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Electricity Bill

Volume 439: debated on Tuesday 24 June 1947

The text on this page has been created from Hansard archive content, it may contain typographical errors.

As amended (in the Standing Committee), further considered.

Clause I—(Main Functions Of Electricity Boards)

3.42 p.m.

I beg to move, in page 2, line 41, to leave out from "in," to "and," in line 42, and to insert:

"such part of the area of that other Area Board as may be specified in the authorisation."
On the Committee stage of the Bill, the right hon. Member for Southport (Mr. R. S. Hudson) moved an Amendment which related to the provision of bulk supplies by one area board to another. He made the submission w.hich, in effect, was intended to make more specific the arrangements between area boards. I thought that there was substance in the right hon. Gentleman's contention and promised to provide a form of words which would be suitable. I have done so, and the effect of this Amendment will be that, where the Central Authority issue an authorisation to one area board to supply electricity to consumers in the area of another area board, that authorisation shall apply only to such part of the area as is specified, and not to the whole area. It is a very simple point, and this Amendment is intended to clarify the position.

I am much obliged to the right hon. Gentleman. He has met the point we submitted to him, and we are very grateful.

Amendment agreed to.

I beg to move, in page 3, line 10, to leave out "The policy of," and to insert:

"In exercising and performing their functions."
This and a number of the succeeding Amendments relate to the same topic. The object of this series of Amendments is to meet a criticism which was made by hon. Members opposite in Committee and which was directed to the vagueness, as they felt, of the words:
"The policy of the Electricity Boards shall …be directed to securing
Hon. Members criticised those words as leaving the matter very much in the air, and they pressed my right hon. Friend to change them, and to introduce instead some wording which would make clearer the duty that was being imposed on the electricity boards. We have sought to remedy that defect, and we have, instead, provided more specific duties in relation to each of the paragraphs (a), (b), (c), (d) and (e) We have also made specific reference to the extension to rural areas. We hope that hon. Members opposite will feel that the position is now clarified, and that the duties incumbent on the boards are precisely set out. That, we feel, meets the criticism which was made, with regard to which we felt there was some substance, namely, that the words quoted above do not specify with sufficient clarity what is placed on the boards and what is their duty.

Again, we are obliged to the Government. This is a concession of substance and this Amendment and the succeeding ones substantially meet the point that the Opposition made in Committee. Briefly it puts, as we believe it ought to put, a legal obligation on the boards to carry out the specified duty. The original Clause did not have this effect and merely amounted to a series of pious intentions. We think that the Amendments substantially improve the Bill.

Amendment agreed to.

Consequential Amendments made.

Clause 2—(Additional Functions Of Electricity Boards)

I beg to move, in page 4, line 8, to leave out "such." and to insert "electrical."

This Amendment, the one immediately following it and the next but one could, perhaps, be considered together with your permission, Mr. Speaker. The three Amendments are necessary in order to make it clear that the powers of the boards to instal, repair, maintain or remove electrical plant or fittings, as the case may be, shall not be restricted to plant supplied by themselves only. It is generally agreed that such a restriction would be undesirable.

Amendment agreed to;

Consequential Amendments made.

I beg to move, in page 4, line 8, at the end, to insert: "and

(c) to carry on all such activities as it may appear to the Authority to be requisite, advantageous, or convenient for them to carry on for or in connection with the performance of their duties under the foregoing Section or with a view to making the best use of any assets vested. in them by or under this Act."
The circumstances in which I move this Amendment are a trifle peculiar. If you happen to have read this Bill, Sir, and recall it to your mind as originally drafted, you will no doubt have observed that paragraph (c), which we now seek to insert, was in the original Bill. After a lengthy Debate in Committee about the merits of this paragraph, which the Opposition moved to delete, a vote took place. It so happened that in the vote, a majority, composed entirely of hon. Members of the Labour Party, were found to have voted in favour of the deletion of the paragraph. At the same time, all the hon. Members of the Opposition voted the other way. It might be thought that the Opposition had acted in some perfidious manner in voting that way, but I would not suggest such a thing. I think that we were all sheep together, with the exception of my hon. Friend the Member for Reading (Mr. Mikardo) who was a lone wolf. He stood on his own and voted the right way.

The case for re-inserting the paragraph is that it is usual in the few Bills of this kind to give fairly wide powers to boards to carry on a number of different activities. These words are practically identical with those in the Coal Industry Nationalisation Act. Words of this kind are necessary because a body in the position of an electricity board, either the Central Authority or an area board, may have to conduct a number of activities. I mentioned in the Committee that a publicity campaign would be covered by a provision of this sort. Similar activities would be the sale of waste clinker, the provision of a canteen service for employees, the provision of hospitals and of houses in remote areas, and, no doubt, there are many other activities which would be covered by words of this kind. In Committee the Opposition objected to the paragraph being drawn in such wide terms, but when one is dealing with a large and important body of this kind it is difficult to restrict the provision. One would have to compose an enormous list of possible activities, which I think would be out of the question. It is hardly conceivable that we can now anticipate everything that the Authority might properly, and in accordance with the general spirit of the Bill, wish to do in the future. I think I need mention only one other point. The paragraph refers to:
"making the best use of any assets vested in them by or under this Act."
That is a reference to the non-electricity assests which, to some extent, even with the Amendments which have been made in Committee and with other Amendments which might be made hereafter, will still exist. For example, there may be some gas undertakings which will vest in the boards, and it will be necessary for the boards to have power to dispose of them. This paragraph provides that power.

The Parliamentary Secretary referred with becoming modesty to the contretemps in the Standing Committee. and I can assure him that no hon. Member on this side of the House is in any position to attempt to score off him and his hon. Friends on that point. But I do think the Parliamentary Secretary carried his modesty a little far when he referred to this paragraph as providing the boards with "fairly wide powers." "Fairly wide powers" is a very modest description of a provision which confers on the Authority a substantial power to carry on any transaction of any sort that it so desires. It would have been more honest if this paragraph had been drafted:

"The Boards may do anything they like."
Those words would have substantially the same effect as the proposed paragraph, and at the same time they would have been perfectly open and above board.

It is difficult to visualise any activity in which the boards would not be empowered to indulge under this paragraph. I am sure the Parliamentary Secretary did not wish to mislead the House when he said its provisions were fairly similar to the corresponding provision in the Coal Industry Nationalisation Act. I am afraid that is not so. The relevant provision of the Coal Industry Nationalisation Act is Section I (2) and, in particular, paragraphs (d) and (e) The material and comparable provision is contained in paragraph (e,) which says:
"any activities which can advantageously be carried on by the Board with a view to making the best use of any of the assets vested in them by this Act."

If the hon. Gentleman will read the first part of the passage from which he has quoted, he will see that the words are practically identical.

The Parliamentary Secretary has referred to the "first part." There are four preceding paragraphs. I will read them all if he so wishes. Which has he in mind?

The words are:

"The functions of the National Coal Board …shall include the carrying on of all such activities as it may appeal to the Board to be requisite, advantageous or convenient for them to carry on for Os in connection with the discharge of their duties under the preceding Subsection and in particular, but without prejudice to the generality of this Section—"
It is obvious that those words are much narrower than the provisions of this Bill. In this Bill anything that appears to the Authority to be advantageous is permissible. That means that there is no limit at all. No one desires to inhibit the Electricity Authority from performing any necessary functions in connection with the generation and distribution of electricity, but what calls for explanation is the desire to arm the Central Authority with powers to carry on almost any other industrial process. Is it the intention of the Government that it should, or are the Government merely following their now habitual process of taking every possible power in every possible Bill in case somebody later on may want to use it? I think we are entitled to know what are the intentions of the Government, as under this Bill the Government will have power to issue directions to the Authority.

I am glad the Parliamentary Secretary did not call in aid on this occasion, as he will recollect he called in aid on the Committee stage, a wholly fallacious comparison between statutory powers and the memorandum of association of a company, because I imagine the abandonment of that argument means that the Parliamentary Secretary has now been convinced of its fallacious nature. I suggest that the proper comparison with the powers given to this statutory monopoly is with' the powers given under Private Bill procedure in this House to public utility companies. The Parliamentary Secretary will know that in all such cases the applicant for the powers has to satisfy the Select Committee of the real need for every power before it is given. This Electricity Authority is in many cases actually replacing the public utility companies operating under these private Acts of Parliament and, therefore, the analogy is exact. The Electricity Authority should be in substantially the same position as those public utility companies—that is to say, fully entitled to any powers for which it can make out a reasonable case, but not entitled to take wide and sweeping powers to do almost anything it wishes.

In his habitually disarming way the Parliamentary Secretary may have led the House to think that the discussion on this Amendment arises solely owing to the amusing little contretemps in the Standing Committee, but it goes further. It goes to the root of the purpose of these public monopoly corporations. Are they, or are they not, to be confined to the particular function which was the intention of this House in setting them up—that is to say, dealing with electricity—or are they to have carte blanche to wander over the whole sphere of industry, competing at will with other State monopolies, or even with that diminishing but still vigorous class, the private enterprise firm? We are entitled to know, and the Parliamentary Secretary has not told us. He has simply asked for these powers, said that the necessity for the request arose merely because of an accident, and sat down. I hope that before we give to this Authority and to the Minister who controls it these amazingly extensive powers, we shall be told why they are required and for what purpose it is intended they shall be used.

4.0 p.m.

I feel bound to say a word on this matter because I had the privilege on another occasion of moving the deletion of these words, and of having the Government reject my Amendment and the Committee accept it, although it was also the one occasion when I voted against myself. I rather regret the Government have turned from the path they then took in voting against themselves. The Parliamentary Secretary knows perfectly well that he is proposing an omnibus proviso. When that was suggested earlier today he dissented and I notice that he shook 'his head with considerable vigour. But the Parliamentary Secretary, even if he has not reached that stage of wisdom which I remember he could bring to the Bill in the mornings, in regard to matters in general, will understand, I hope, that the memorandum of a limited company really has very little effect in practice, because those companies are already very limited in scope in other ways and for other reasons. My hon. Friend the Member for Kingston-upon-Thames (Mr. Boyd-Carpenter) has pointed out that the electricity boards are more comparable to public utility companies than to anything else, and that this Amendment gives the Board wider powers than they have ever had. It is completely contrary to Parliamentary practice that powers should be given so wide as these and I would close, because I do not want to talk at length at this stage, by making one quotation which, I think, does set out the difference between an omnibus clause in a memorandum and other such powers:

"In general, the distinction between the objects clause in a memorandum and powers granted by Parliament is, that the first defines the purposes for which the company may apply its members' funds, and the second defines the powers which the company may exercise as against the rest of the world, being powers which it could not normally exercise without the authority of Parliament."
I think that is a fair definition, and I am bound to say that the Amendment goes very far beyond the usual practice.

I should like to reinforce what my hon. Friends have said. A similar provision was inserted in the Coal Industry Nationalisation Act, and although it may not have gone quite so wide as this, it certainly was, in my opinion, too wide. Now we have this paragraph in this Bill which goes even wider. I can quite understand why it is the Government's point of view to insert powers of this kind in their nationalisation Bills. When they nationalise an industry or a service—the coal mines, or electricity, or transport— it is a large and formidable undertaking. To get the nationalisation Bill through Parliament is a difficult job and takes a long time, and they can get only one or, at the most, two Bills of that size and complexity through Parliament in a single Session. Therefore, it is extremely convenient to extend the field of nationalisation almost without limit by the backdoor and by a process of pure administration, such as can be done by inserting wide and unlimited powers of this kind in a nationalisation Bill. It is, in fact, what the Government are doing. They ought to be perfectly frank about it and admit it, and it ought to be placed on record, for that is really what their object appears to be—to extend the field of nationalisation to an almost unlimited extent by putting in a small and apparently harmless provision of this kind in a nationalisation Bill

The disappearance of this paragraph in Committee was somewhat surprising, but it was welcome. As it stands, I think, it neutralises a great deal of the work that was done in trying to define the duties and functions of the Board. A very great deal of detailed work will be rendered valueless as a result of this Amendment. Although I do not like statutory rules and -orders I do suggest that, if more elasticity is wanted, it might be better in this' case instead of having these words, to allow statutory rules and orders which might be considered in this House. Once these words are put into the Bill great powers will be given that cannot be questioned in any way.

The Parliamentary Secretary, when defending the restoration of this paragraph, justified it on two grounds. He said that it was necessary in order to enable the Authority to carry on such things as canteens or to provide residences for workers in out of the way places. In order to do that, this paragraph is entirely unnecessary; because in Clause 47 specific provision is made for the Authority to consult with the associa- tions of employees, and so forth, with a view to the provision of welfare activities; and, clearly, the provision of a canteen comes within welfare. Therefore, the Authority, under the terms of the Bill as it stands, would have ample powers to do that. He went on to say that the other object of this Amendment is to enable the Boards, when they take over the assets of certain holdings which have nothing to do with electricity, to sell them to the best advantage. We would not query that at all; but it is quite unnecessary, in order to enable the Central Authority to sell assets that are not connected with the generation or distribution of electricity, to give them these extremely wide powers; it is not necessary to give them these powers to carry out that very narrow purpose. Therefore, the Government Front Bench have made out no case for this Amendment.

Ithas been the practice of Parliament throughout the history of Bills dealing with electricity, conferring powers either on local authorities or on private companies, to specify in great detail the powers and duties that are to be exercised by the local authorities as undertakers or by companies. These powers, which resemble ordinary omnibus powers in an ordinary public company's memorandum, are entirely new in the history of this House and in the history of the generation and distribution of electricity in this country, and are quite clearly unnecessary for the efficient functioning of the Centra] Authority. In these circumstances I regret very much the Government have seen fit to put down this Amendment, and to try to reverse the decision made upstairs. Certainly, on the arguments that have been put forward, I think any dispassionate reader of the Debate, or anyone who has listened to the Debate so far, will agree that no case for the Amendment has been made out.

I do not think that this Amendment ought to be allowed to go by with what the right hon. Gentleman has just now said uncorrected. What it provides is quite clear. Clause 47 says that the Central Authority may seek consultation with any organisation in order to promote and encourage welfare matters, not to set up canteens. That is an entirely different matter.

Perhaps, with the permission of the House, I might read it again. Clause 47 reads:

"the promotion and encouragement of measures affecting the safety, health and welfare …"
Quite clearly, the establishment of canteens is a measure affecting the welfare

Division No. 275.

AYES

[4.11 p.m.

Adams, Richard (Balham)Gaitskell, H. T. N.Messer, F.
Alpass, J. H.Ganley, Mrs. C. SMiddleton, Mrs. L.
Anderson, A. (Motherwell)Gibbins, J.Mikardo, Ian
Anderson, F (Whitehaven)Glanville, J. E. (Consett)Moody, A S
Attewell, H. C.Goodrich, H. E.Morris, Lt.-Col. H. (Sheffield, C.)
Austin, H. LewisGordon-Walker, P. C.Morris, P.(Swansea, W.)
Awbery, S. S.Greenwood, A. W J (Heywood)Morrison, Rt. Hon H. (L'wish'm, E.)
Ayles, W HGrey, C. F.Moyle, A.
Ayrton Gould, Mis. BGrierson, EMurray, J. D
Bacon, Miss A.Griffiths, D. (Rother Valley)Nally, W
Barstow, P. GGuest, Dr. L. HadenNeal, H. (Claycross.)
Barton, C.Guntar, R. JNichol, Mrs. M. E. (Bradford, N.)
Battley. J. R.Guy, W HNicholls, H. R. (Stratford)
Beattie, J. (Belfast, W.)Haire, John E (Wycombe)Noel-Baker, Capt. F. E. (Brentford)
Bechervaise, A. EHale, LeslieOldfield, W. H
Berry, H.Hamilton, Lieut.-Col. R.Oliver, G H
Beswick, F.Hannan, W (Maryhill)Paling, Will T. (Dewsbury)
Binns, J.Hardy, E. A.Palmer, A M. F.
Blyton, W. R.Harrison, J.Parker, J
Bowles, F. G. (Nuneaton)Hastings, Dr. SomervilleParkin, B. T
Braddock, Mrs. E. M. (L'pl, Exch'ge)Henderson, Joseph (Ardwick)Paton, J. (Norwich)
Bramall, E. A.Herbison, Miss M.Peart, Thomas F.
Brook, D (Halifax)Hobson, C. R.Poole, Major Cecil (Lichfield)
Brooks, T. J. (Rothwell)Holman, P.Popplewell, E.
Brown, T. J. (Ince)Holmes, H. E (HemsworthJPorter, G. (Leeds)
Bruce, Major D. W. T.House, GPrice, M. Philips
Buchanan, G.Hoy, J.Pritt, D. N.
Butler, H W. (Hackney, S.)Hudson, J. H. (Ealing, W.)Proctor, W. T
Callaghan, JamesHughes, Hector (Abe'deen, N.)Pryde, D. J.
Carmichael, JamesHughes, H D. (Wolverhampton, W)Pursey, Cmdr H
Castle, Mrs. B. A.Hutchinson, H. L. (Rusholme)Randall, H. E
Champion, A. J.Hynd, H. (Hackney, C.)Ranger, J.
Chater, D.Janner, B.Rankin, J.
Chetwynd, G. RJay, D. P. TRees-Williams. D. R
Cluse, W. S.Jeger, G (Winchester)Rhodes, H.
Cocks, F. SJeger, Dr. S. W. (St. Paneras, S.E.)Ross, William (Kilmarnock)
Collindridge, F.Jones, D. T. (Hartlepools)Royle, C.
Collins, V. J.Jones, P. Asterley (Hitchin)Sargood, R
Colman, Miss G. M.Kendall, W. D.Scollan, T.
Comyns, Dr. L.Kenyon, C.Sharp, Granville
Corbet, Mrs F K: (Camb'well, N.W)King, E. M.Shinwell, Rt. Hon. E.
Corlett, Dr J.Kinley, J.Shurmer, P.
Corvedale, ViscountKirby, B. V.Silverman, J. (Erdington)
Cove, W. G.Lang, G.Simmons, C. J.
Daggar, G.Lavers, S.Skeffington, A. M.
Davies, Ernest (Enfield)Lawson, Rt. Hon. J. JSkeffington-Lodge, T. C
Davies, Hayden (St. Pancras, S.W.)Lee, F. (Hulme)Skinnard, F. W.
Davies, R. J. (Westhoughton)Lee, Miss J (Cannock)Smith, C. (Colchester)
Deer, G.Lever, N. H.Smith, H. N. (Nottingham, S)
Delargy, H. Levy, B. W.Smith, S. H. (Hull, S.W.)
Diamond, JLewis, A. W J. (Upton)Snow, Capt. J W
Dodds, N NLewis, J. (Bolton)Solley, L. J.
Denovan, T.Lipton, Lt.-Col. M.Soskice, Maj. Sir F
Driberg, T. E. N.Logan, D. GSparks, J. A.
Dugdale, J. (W. Bromwich)Longden, FStamford, W
Dumpleton, C. WLyne, A. WSteele, T.
Dye, S.McAdam, W.Stephen, C
Ede, Rt. Hon. J CMcEntee, V. La TStokes, R. R
Edelman, M.McGhee, H. G.Stross, Dr B.
Edwards, Rt. Hon. Sir C (Bedwellty)Mack, J. D.Stubbs, A. E.
Evans, E. (Lowestoft)McKay, J (Wallsend)Swingler, S.
Evans, John (Ogmore)McKinlay, A SSylvester, G. 0.
Evans, S. N. (Wednetbury)McLeavy, FSymonds, A L
Ewart, R.Macpherson, T. (Romford)Taylor, H. B (Mansfield)
Farthing, W. JMainwaring, W HTaylor, R. J. (Morpeth)
Fernyhough, E.Mann, Mrs. J.Thomas, D. E. (Aberdare)
Field, Captain W. JManning, C. (Camberwell, N.)Thomas, I. 0. (Wrekin)
Follick, M.Manning, Mrs L. (Epping)Thomas, John R. (Dover)
Foot, M. M.Mathers, GThomson, Rt. Hon. G R. (Ed'b'gh, E.)
Forman, J. C.Medland, H. MThorneycrofl Harry (Clayton)
Freeman, Peter (Newport)Mellish, R JThurtle, Ernest

of persons employed in the factory or generating station concerned.

Question put, "That those words be there inserted in the Bill."

The House divided: Ayes, 243; Noes, 99.

Tiffany, S.Watkins, T. E.Willey, O. G. (Cleveland)
Timmons, J.Watson, W. M.Williams, J. L. (Kelvingrove)
Titterington, M. F.Webb, M. (Bradford, C.)Williams, W. R (Heston)
Tolley, L.Wells, P. L. (Faversham)Willis, E.
Turner-Samuels, MWestwood, Rt. Hon. J.Wills, Mrs. E A
Usborne, HenryWhite, H (Derbyshire, N.E.)Woods, G. S
Vernon, Maj W. F.Whiteley, Rt. Hon. WWyatt, W.
Viant, S. P.Wigg, Col G. E.Yates, V F
Wallace, G. D. (Chislehurst)Wilkes, L.
Wallace, H W. (Walthamstow, E.)Wilkins, W. A.

TELLERS FOK THE AYES:

Warbey, W. N.Willey, F. T (Sunderland)Mr. Pearson and Mr. Dairies.

NOES.

Amory, D. HeathcoatHead, Brig. A. H.Neven-Spence, Sir B
Assheton, Rt. Hon. R.Headlam, Lieut.-Col. Rt. Hon. Sir C.Nicholson, G
Baldwin, A E.Henderson, John (Cathcart)Noble, Comdr. A. H. P
Barlow, Sir J.Hope, Lord J.Peake, Rt. Hon. 0.
Beechman, N. A.Howard, Hon. A.Peto, Brig. C. H. M.
Birch, NigelHudson, Rt. Hon. R. S. (Southport)Pickthorn, K.
Bower, N.Hutchison, Lt.-Com. Clark (E'b'gh, W)Raikes, H. V.
Boyd-Carpenter, J. A.Hutchison, Col. J. R. (Glasgow, C.)Ramsay, Maj. S.
Braithwaite, Lt-Comdr. J. G.Jarvis, Sir J.Reed, Sir S. (Aylesbury)
Buchan-Hepburn, P. G. T.Keeling, E. HRoberts, H. (Handsworth)
Bullock, Capt. M.Kerr, Sir J. GrahamRobinson, Wing-Comdr. Roland
Butcher, H. W.Lambert, Hon. GRopner, Col. L.
Challen, C.Lancaster, Col. C. G.Ross Sir R. D. (Londonderry)
Channon, HLaw, Rt. Hon. R. K.Savory, Prof. D. L.
Clarke, Col. R. S.Lipson, D. LScott, Lord W.
Clifton-Brown, Lt.-Col. G.Lloyd, Maj. Guy (Renfrew, E.)Shepherd, W. S. (Bucklow)
Corbett, Lt.-Col. U. (Ludlow)Low, Brig. A. R. W.Smiles, Lt.-Col. Sir W
Crosthwaite-Eyre, Col. O. ELucas-Tooth, Sir H.Snadden, W, M.
Crowder, Capt. John E.MacAndrew, Col. Sir C.Spearman, A. C. M
Cuthbert, W. N.McCallum, Maj. D.Spence, H. R.
Davidson, ViscountessMacdonald, Sir P. (I of Wight)Strauss, H. G. (English Universities)
De la Bère, R.McKie, J. H. (Galloway)Studholme, H. G.
Digby, S. W.MacLeod, J.Thornton-Kemsley, G N
Dodds-Parker, A. D.Macmlllan, Rt. Hon. Harold (Bromley)Thorp, LT.-CoI, R. A. F
Duthie, W. S.Macphprson, N. (Dumfries)Touche, G. C.
Eccles, D. M.Maitland, Comdr. J. W.Wadsworth, G
Eden, Rt. Hon. A.Marlowe, A. A. H.Walker-Smith, D
Fleming, Sqn.-Ldr. E. L.Marshall, D. (Bodmin)Ward, Hon. G. R
Fraser, H. C. P. (Stone)Marshall, S. H. (Sutton)Webbe, Sir H. (Abbey)
Galbraith, Cmdr. T D.Medlioott, F.Wheatley, Colonel M J
Gammans, L. D.Mellor, Sir J.
Grant, LadyMoore. Lt -Col. Sir T.TELLERS FOR THE NOES:
Grimston, R. V.Morris, Hopkin (Carmarthen)Mr. Drewe and Major Conant.
Hare, Hon. J H (Woodbridge)Morris-Jones, Sir H.

I beg to move, in page 5, line 16, after "shall," to insert:

"subject to the provisions of the Act of 1943."
This Amendment makes it clear that the specific provisions of the Hydro-Electric Development (Scotland) Act, 1943, are not superseded by the new provisions in this Bill.

Amendment agreed to.

Clause 3—(Constitution Of Central Authority And Area Boards)

I beg to move, in page 6, line 3, at the end, to insert:

"and such appointments shall be made from the Area Boards in rotation."
This Amendment relates to the appointment and period of office of the chairmen of the area boards on the Central Authority. It is our intention that the closest possible contact shall be maintained. be- tween the Central Authority and the area boards, which, I think, will be;to their mutual advantage. We have to consider how that contact is to be initiated and afterwards maintained. It is my view, after a careful consideration of this problem, that the best means of maintaining close contact is to appoint, in rotation, four of the area board chairmen to the Central Authority. We considered whether it would be desirable, having made the appointments, to retain the services of certain of the chairmen, with high qualifications, on the Central Authority for a period of years, but, as the intention is to maintain contact between the boards, rather than to utilise the services of the chairmen of the area boards on the Central Authority, I came to the conclusion that this was the best means of dealing with the problem.

I agree with the right hon. Gentleman. I think the suggestion was first made by us in Committee. It is a definite improvement to the Bill.

Amendment agreed to.

Clause 4—(Definition Of And Variation Of Areas)

I beg to move, in page 7,line 44, after "aforesaid," to insert:

"or to constitute a new area for which a new Area Board is required to be established under the next following Subsection."
This Amendment, I think, meets the views of the right hon. Gentleman and his colleagues. We had some discussions on what might happen in the event of a new area board being created. As the wording of the original provision appeared to be defective, I have framed this form of wording, which I hope will be satisfactory.

Amendment agreed to.

I beg to move, in page 8, line 10, to leave out "may, where necessary," and to insert:

"shall, so far as it appears to the Minister to be necessary or expedient in consequence of the variation of areas or the establishment of a new Area Board."
This Amendment and the two subsequent Amendments are consequential on the Amendment which has just been made.

I think that this is a little more than a consequential Amendment because it leaves to the sole discretion of the Minister, without consultation with the Central Authority or the area boards, to decide on what is or what is not necessary to be done in consequence of a change in or variation of areas.

The right hon. Gentleman is partly right. We are not certain what will be required in this matter, and it appears to us, therefore, that it must be left to the Minister to determine, in the light of the circumstances, what course of action shall be taken. It will be noted that we have inserted the word "shall" in the place of the word "may," thus making the provision mandatory. The Opposition had an Amendment on the Order Paper which was not called during the Committee stage, to make it mandatory instead of permissive. I have, therefore, responded to their wish, and I hope that the right hon. Gentleman will be satisfied with the explanation.

Amendment agreed to.

Consequential Amendments made.

Clause 5—(Powers Of Minister In Relation To Central Authority)

I beg to move, in page 9, line 7, to leave out Subsection (2), and to insert:

(2) In carrying oat such measures of reorganisation or such works of development as involve substantia] outlay on capital account, and in giving directions to any Area Board with respect to such measures or works, the Central Authority shall act in accordance with a general programme settled from time to time in consultation with the Minister."
This Amendment and the next Amendment standing on the Order Paper relate to some criticism which was made by the Opposition during the Committee stage about the nature of the words used in the Bill. It was thought that they were a bit "woolly," if I may use the expression of hon. Members opposite, and I make no protest about that. It seemed at the time that they were slightly "ambiguous," which is a more refined expression than "woolly." I think, therefore, that it may be desirable to improve the language of the Clause.

We are grateful once again to the Minister for meeting our views. As the Debate goes on, the House will discover that this is not the only occasion when the drafting of the Bill has been "woolly," and, indeed, some of the ideas behind the right hon. Gentleman, as shown by the fact that he has had to recommit so many Clauses. However, we are grateful for any small improvements.

All I have to say about that is that it denotes how responsive we are to hon. Members opposite when they make their submissions.

Amendment agreed to.

Consequential Amendment made.

Clause 6—(Powers Of Central Authority And Minister In Relation To Area Boards)

Amendment made: In page 10, line 3, leave out "on lines settled from time to time by," and insert:

"in accordance with a general programme settled from time to time in consultation with."—[ Mr. Shinwell.]

Clause 7—(Consultative Councils)

I beg to move, in page 10, line 24, after "half," to insert: "not more than two-thirds."

I think it would be for the convenience of the House if this Amendment were discussed with the next Amendment standing in the name of the hon. and gallant Member, in page 10, line 25, to leave out from beginning, to "and," in line 27, and to insert:

"members of local authorities whose districts are wholly or partly within the area, nominated (by such bodies as appear to the Minister to represent those authorities) to represent the general interests of domestic consumers of electricity."

4.30 p.m.

Clause 7 (2) states that not less than half of the panel of persons nominated from members of local authorities in the area of the board in question and nominated by such associations as appear to the Minister to represent those authorities shall go to the formation of such a council; and the remainder, if any—and I repeat "if any," because not less than half might mean all from local authorities—are to be appointed after consultation with such bodies as the Minister thinks fit to represent consumers of electricity, and other persons or organisations interested in the development of electricity in the area.

What we seek to do is, first, to limit the number drawn from local authorities to two-thirds. In the Clause as it stands the specific representation of the consumers is the duty of the other half— not the half drawn from the local authorities—and they are also to represent persons and organisations interested in development of electricity in the area. We all admit that local authorities may, and do, represent domestic consumers, but the great bulk of electricity is consumed by industry, and there is a risk of industry not being adequately represented. Secondly, we seek expressly to require in writing that the local authority members—those nominated by local authorities—shall represent the general interest of domestic consumers. Third, we wish to clear up the position of the local authority whose territory is partly in one area and partly in another area. That is not clear as the Clause stands. Fourth, by changing the word "association" to "bodies," we believe we are giving greater flexibility, as some bodies which might be useful might be excluded if we use the word "associations." We believe that this will clarify the Subsection.

As I have said on previous occasions, we appreciate the objects for which these consultative councils are to be set up. We believe the objects to be sound, but we distrust the ability of the machinery envisaged in the Clause to obtain those objects. I believe that no single piece of machinery can possibly fulfil the two functions which are required—one to protect the consumers, and, the other, to provide industry with the opportunity of general criticism and of giving helpful suggestions. I believe that two separate machines are needed. I am trying to make the best of the Clause, and I hope that my suggestions will be accepted in that spirit. I know that local authorities may wish to resist this. They would like to have an opportunity of being the sole representatives. I do not blame them. They have had considerable powers in the past, and every one likes to retain their powers. I am a member of a local authority, and I have sympathy with them, but what we ask for is really all that they have had in the past—that there should be maximum representation of two-thirds, which is, roughly speaking, equivalent to the power which they have always had.

It may be for the convenience of the House if we consider the basis upon which the hon. and gallant Gentleman has presented his Amendment. It is proposed in the Bill, with regard to the creation of consultative councils in each area, that they should consist of not fewer-than 20 or more than 30 persons to be appointed by the Minister, and not less than half to be appointed from a panel of persons nominated from amongst members of local authorities in the area by such associations as appear to the Minister to represent those authorities; and the remainder shall be appointed, after consultation with such bodies as the Minister thinks fit, to represent consumers of electricity and other persons or organisations interested in the development of electricity in the area. Those are the terms of the Clause.

It is of the utmost importance that the provision for appointing members to the consultative councils should be flexible. The reason is that circumstances vary from area to area. There is no dispute between us as to the desirability of having the local authorities represented on the consultative councils. In certain areas, there are local authorities who have been directly associated with electricity undertakings which they own; whereas, in other areas, there are local authorities who, while naturally interested in the matter of electricity supply, were not the owners of electricity undertakings. It appears to me that it might be necessary—indeed, I think that it will be necessary—that we should vary the arrangement for the appointment and the representation of local authorities from area to area, and not provide too rigid a form. It is true that the local authorities associations, as I think the hon. and gallant Gentleman indicated, have expressed a desire for an increase in the number of local authority representatives on the consultative councils; on the other hand, the Federation of British Industry, which claims to represent industry, have expressed the view that the proposed number of local authority representatives is too high and industry should have a larger number of representatives. It is for the Minister to strike a reasonable balance, taking all the circumstances into account, to see that the local authorities who, on the whole, can claim to represent the domestic consumers are adequately represented, and, at the same time, to ensure that industry is also adequately represented. That is the intention.

If I accepted the Amendment to substitute the words, "nor more than two-thirds," for the word, "half," local authorities in every area might assume that they were entitled, in spite of the special circumstances of the area, to two-thirds representation. I do not want to give them that impression, and I feel it is better that the matter should be left in my hands after consultation with the representative organisations. In view of that explanation, perhaps the hon. and gallant Member will feel that I have taken the most appropriate line in the circumstances.

I think that the difficulty under which we are labouring, and under which the Committee upstairs laboured, lies in the fact that the Govern- ment do not seem to have any clear idea of what interests, if any, the local authority representatives should represent. It may be argued, and it would perhaps be somewhat natural to argue, that local authority representatives are the natural custodians of the interests of the consumers, the electors, who, for the most part, use electricify. But that interpretation does not seem to square with the words of the Clause, which states:

"Each of the said Councils shall consist of …
  • (a) not less than halt shall be appointed from a panel of persons nominated from amongst members of local authorities in the area by such associations as appear to the Minister to represent those authorities; and,
  • (b) the remainder shall be appointed, after consultation …to represent consumers of electricity …"
  • The implication of that is that if the rest are to represent the interests of the consumers the local authority representatives are to represent something else, not the consumers. We have never been told what the local authority representatives are to represent. They certainly do not represent agricultural interests, or the industrial consumers of electricity, although there may be some exceptional cases where a local authority has a large factory which consumes electricity, or owns trams which need electricity to run them. But these represent a minority, and it seems hardly logical that in order to represent such local authorities half the members of the consultative council in every area should be appointed from members of local authorities. I cannot conceive that that is the intention, even allowing for the woolliness of the present Minister.

    One of the main defects of the Bill is that the statutory safeguards which the consumer has enjoyed since electricity first started to be developed are being abolished. The only alternative safeguards are these consultative councils. Therefore, we attach the greatest importance to trying to see that these councils are bodies which will have a substantial voice, and can make their influence felt. We put forward suggestions in Committee for improving the effectiveness of these councils. Some of those suggestions were adopted by the Government, and form the subject of subsequent Amendments. We believe that it is vital that there should be a clear understanding of what the consultative councils exist for, and I would like to ask the Minister whether he could define, at this late stage, what his conception is of the functions of local authority representatives? Are they to represent domestic consumers, or to be on the council merely because they once had electricity undertakings which are now being taken away? If we could get our ideas clear on that it would help Members on all sides of the House to be able to assess, better than they can do at the moment, the provisions of this Subsection.

    4.45 P.m.

    If the right hon. Gentleman's ideas are not clear I cannot understand why he described me as being woolly. I should imagine that it was his mind which required clarification. He himself tried to clear up the matter in Standing Committee, and I am a little surprised at the way in which he has just spoken. In dealing with this point in Standing Committee, the right hon. Gentleman "said:

    "I think everyone will agree that the local authorities can be taken to represent the ordinary domestic consumer. They certainly will not represent the industrial consumer, the commercial consumer or the agricultural consumer.''
    That is not a very good answer to his question, because they represent the whole of them in one form or another. Then the right hon. Gentleman went on to say:
    "Therefore, we think that the domestic consumer ought to be well satisfied with having 50 per cent. of the representation. This is slightly more than the domestic consumer is entitled to on the basis of electricity consumed, and for these reasons we suggest that the words 'not less than' should be deleted, and the word 'one' inserted, so that one-half of the council, and not more than one-half, should be representatives of the local authorities."—[OFFICIAL REPORT, Standing Committee E, 18th March, 1947; c. 302.]
    If that is so, I cannot understand why this Amendment has been proposed today. The right hon. Gentleman wanted to know whom the local authorities represented, and why they were to be represented on these consultative councils. The Bill is explicit about the functions of the councils. I will not weary the House by reading the relevant Clause, but it is clear what the consultative councils are expected to do. The local authority has the right to be represented on the consultative council, because apart from its general interest in the provision of electricity supply it has a special interest. An area board or the Central Authority, may require from time to time to open up streets, interfere with highways, or disturb amenities to lay cables and the like. Clearly, a local authority is much concerned with such questions, and would wish to express an opinion upon them, but generally speaking I would say that the primary interest of the local authority on the consultative councils is its concern with the interests of electricity consumers and, in particular, of potential electricity consumers with regard to the possibility of expanding electricity in its area. It seems to me that in all the circumstances we are taking the right measures to secure adequate representation from bodies which are entitled to be represented.

    If I may speak again by leave of the House, I should like to answer the right hon. Gentleman's question by saying that the reason we put this Amendment down again was that a Division was taken in the Committee upstairs on a limiting Amendment which was defeated. We then suggested not more than half, but, in order to go further towards meeting the right hon. Gentleman we are now suggesting that it should not be more than two-thirds. As the Bill stands the Minister is able to appoint a 100 per cent. local authority representation if he so desires. The Bill says, "not less than half," but it leaves him free to appoint 100 per cent. if he wishes. It may be that we have not made our point clear, but while admitting the definition he has just given of the function of the local authority representation, which is clearer than any we have ever had before, we still think they ought to be content with a half and certainly not more than two-thirds in order to enable adequate room to be found for the people whom we consider should be represented as consumers —namely, those whom the right hon. Gentleman intends to include in an Amendment which will be discussed later.

    It is quite clear that provision is made for persons other than those represented on local authorities because paragraph (6) says that the remainder shall be appointed. It may well be that this requires strengthening, and although I am not quite certain, I think it might be more explicit. In those circumstances I think it might perhaps be possible to correct the matter in another place.

    In view of that assurance, I beg to ask leave to withdraw the Amendment.

    Amendment, by leave, withdrawn.

    I beg to move, in page Io, line 30, after "represent," to insert:

    "agriculture, commerce, industry, labour and the general interests of."
    This Government Amendment is in response to a suggestion made in our Debates in Committee that all desirable interests should be represented. There is another Amendment on the Order Paper which contests one of the words contained in this Amendment—the word"labour"—but perhaps I can deal with that at a later stage. It is my submission that these words adequately secure the representation of all persons and bodies who are entitled to be represented.

    I should like to say how pleased I am that the Minister has responded to what was said upstairs. This Amendment covers a wide variety of interests and it was certainly our contention in Committee that all possible interests should be taken into account with regard to representation on the consultative committees. As a Scottish Member perhaps the Minister and you, Mr. Deputy-Speaker, will allow me to say how glad I am that this Amendment has been so widely drawn, because we Scottish Members had and, indeed still have, considerable apprehensions in regard to the' way in which this Bill will operate in the northern Kingdom. It may be out of Order for me to say this, but—

    If the hon. Member knows that it is out of Order he had better not say it.

    I accept your Ruling, Mr. Deputy-Speaker, but I think I am in Order in saying that we will have some doubt as to how this Measure will operate in Scotland. As a Scottish Member representing an agricultural constituency I am glad to see that the Minister has put agriculture first on his list because there is no doubt that it ranks largest, both from the point of view of area under cultivation and the numbers of people employed. We are very anxious to see that it should be the first concern, and I am glad that the right hon. Gentleman has drawn this Amendment so widely.

    Like the hon. Member for Galloway (Mr. McKie), I should like to say how glad I am to see the Minister inserting the word "agriculture" here for the second time in the Bill. In spite of the fact that in his Second Reading speech he said how important it was to increase rural area electrification, I think I am right in saying that in the Bill as originally drafted the word "agriculture" did not occur at all. I hope that the right hon. Gentleman will now bear in mind the engagement that was made between the companies and the National Farmers' Union in September, 1946, whereby a really big scheme of rural electrification was to take place in the next five years enabling farms in the country to be supplied with electricity. This scheme was accepted, without responsibility on the Treasury, by the farmers, who were to bear one-third of the cost, and by the companies who were to bear the other two-thirds. Now the companies are going out of existence and I hope that the Minister will recognise that the new Authority should take over that obligation which was not originally intended to be a Treasury obligation although, in the present circumstances, it undoubtedly becomes one.

    I understand, Mr. Deputy-Speaker, that it is not proposed to call the Amendment to the Minister's Amendment—to leave out "labour," and to insert "persons employed by the Area Board."—standing in my name and in the names of my hon. Friends. Therefore I hope to keep in Order by putting my points at this stage. I want to argue that the Minister should interpret the word "labour" in his Amendment in such a way as to give representation on the consultative committees through the trade unions to those actually employed in the industry. When this matter was raised in Standing Committee I believe that the word "syndicalism" was breathed, but this would hardly be syndicalism because the consultative committees are advisory bodies only, and syndicalism, if it means anything, must surely mean some degree of control.

    5.0 p.m.

    It may be argued that to include employees in this narrower interpretation rather than in the broad definition of labour is improper, because the consultative committees are purely consumer organisations; but I do not think that that is the view of my right hon. Friend because he resisted an Amendment of the Opposition upstairs to change the name of the consultative committees to consumer councils. I want to quote, if I may, some of my right hon. Friend's words. There are two very good quotations, but in view of the need for pressing ahead I will only read the shorter one. This was on the 6th day of the Committee, when the right hon. Gentleman said:
    "Hon. Members will see, therefore, that this is something far beyond a consumers council. It is an entirely new conception, and one which is, I think, very desirable in the circumstances."—[OFFICIAL REPORT, Standing Committee E, 13th March, 1947; c. 278.]
    I hope, therefore, it will not be argued by my right hon. Friend that this is a purely consumers' body and that the employees in the industry should not be represented on it. In the words of the Bill, these consultative councils are to consist of all those interested in the development of electricity in the area, and I am sure that those who work in the industry, technical staff, clerical staff and manual operatives, would certainly come under that definition. I have always found the workers in the electricity industry to be extremely proud of their connection with it. They understand the obligations of the industry to the public, and because of their knowledge of consumer requirements it would be useful if they were represented on the consultative councils. They would make a valuable contribution to the work of the councils because of their knowledge of consumer requirements.

    I, therefore, hope that my right hon. Friend will give an assurance that he intends to give the word "labour" in his own Amendment the meaning "electricity supply employees" and not restrict it, let us say, to the secretary of the local gas workers' branch. Not that one has any objection as such to gas workers, but the gas worker or the carpenter, the doctor or the housewife, is, in relation to electricity, a consumer, whereas the electricity worker is obviously in a very special relation to it, and that is the point I want to make. I know what my right hon. Friend will say, at least I think I do. He will say that under Clause 47, which deals with the negotiating machinery and all the rest of it, the workers have a right to be consulted on all matters affecting the industry, including the practical efficiency of the industry. I am very glad of that, but. I am definitely arguing, and I know I have the support of a number of my hon. Friends, for something additional and extra to that. I want to bring the rank and file employees into a local, common unity of purpose which is really enthusiastic for the development of electricity. I want to bring them in on a level which will really mean something to them.

    There is no question, as I see it, of bringing wages, salaries and conditions into the discussions in the consultative councils, because those matters are quite properly dealt with by the machinery provided under Clause 47. I support this Bill in the interests of electrical efficiency, but I am not so foolish, I hope, as to suppose that the replacement of a director of a company by a far-away expert or even by a retired trade union official, does not at times appear a somewhat cold transaction to the men in the industry itself. If nationalisation in this industry or any other industry is to have a personal meaning to the men and women employed in it, if we are to achieve success in our efforts in the public ownership of electricity supply, we have to make such arrangements that the workers in the industry will intimately share in its responsibilities.

    I want to support the point of view just submitted by the hon. Member and plead with the Minister on this issue, as the hon. Member's Amendment will not be called. In Committee an effort was made to have the workers engaged in the industry closely associated with the consultative councils. If I read this Clause aright, the tendency is all in the direction of watching the rights of both domestic and industrial consumers, and no one will quarrel with the idea that it is necessary to include a Clause of this kind. But surely the tendency today, if nationalisation has a meaning at all, is to bring the workers into the closest consultation with the consumers of the goods which the industry produces. Even in industries under private enterprise it is the tendency to bring the workers as closely as possible into contact with those who are running the industry. This is purely consultative, and I submit that with the best will in the world, and with all their knowledge of local government, even members of local authorities who sit on a consultative council see only one angle of the problem. It is the same with representatives of the industries which may be associated with it. I feel that all interests should be associated in any general discussion—not on conditions or hours of labour, but on how best to equip the industry to meet the demands of the consumers.

    I submit this further point because I believe it is of the utmost importance. While I was a member of the Committee upstairs I was also associated with the Scottish Committee dealing with the Health Services for Scotland. I was absent on occasions from either the one or the other because they both happened to meet at the same time, but if I am permitted to draw an analogy, may I call attention to the Government's attitude in regard to the Scottish Health Services? An advisory committee was appointed— surely I am entitled to draw such an analogy?

    I have not stopped the hon. Member. He has hesitated without being stopped.

    Your movement, Mr. Deputy-Speaker, made me think that you were getting ready to make a comment on my observations, but I will go on until I am stopped. There may be some difference between an advisory committee and a consultative council, but I do not know it. I admit ignorance at once; I cannot define too clearly the difference between them. My reading of their responsibilities is that in either case they are merely to give suggestions to the responsible authority, either the Minister or the board. I know that the Government which was responsible for this Measure was responsible for the Scottish Health Services Measure, and the advisory committee in the latter case is completely dominated by people directly associated with the profession—I dare not say with the industry, because I am dealing with the medical profession. On an advisory committee of 35 members 18 mast be medical practitioners. If that is so, there is nothing unreasonable in pleading that the Minister should interpret the word "labour" to include those engaged directly in the industry in the membership of these councils.

    I admit there may be other interests involved, but I feel that people direct from the industry should be permitted to sit on the councils, even more than trade union officials representing those workers. I hope our pleading will not be in vain, because of the importance of getting the workers to believe that the nationalisation of the industry is much more than a mere change of ownership and that they are being brought into it as members of the community to give even better than they have given in the past.

    I support the point of view that has been put forward as to representation upon the consultative councils. I find it difficult to believe that that is not the intention of the Amendment which has been moved by my right hon. Friend. If one notes that representatives of agriculture, commerce, and industry are to be included in the consultative councils it should be obvious that they must include workers' representatives. Agricultural workers represent the industry quite as well as farmers, and they are represented upon the county committees. It is wholly wrong for the expression "representatives of agriculture" to exclude the farm workers. Similarly, the broad term "representatives of industry" must include not only employers and administrators, but employees, mechanics and others. I hope that the Minister will confirm that view.

    Unfortunately for the argument advanced by the last three speakers, the hon. Member who read out extracts from the speeches of the Minister as they suited his purpose refrained from repeating what the Parliamentary Secretary had said on the same point. Perhaps the hon. Member for Taunton (Mr. Collins) might be interested to note what those views are. The Parliamentary Secretary said:

    "I suggest to my hon. Friends that in view of the fact that we are going to introduce an Amendment on the Report stage covering organised labour it is really unreasonable to insist that we should make specific provision for the representation of the employees in the industry."
    He went on to say:
    "Some of the speeches made by my hon. Friends conveyed to me the idea that these bodies were going to discuss all sorts of things connected with the efficiency of the industry. Supposing they were; I would draw attention to Clause 47 (1, b) where provision is made for consultations between the boards and those employed by the boards on matters affecting safety, health and welfare, and all other matters of mutual interest to the boards, including efficiency in the operation of the board's services."
    Those are already provided for in Clause 47 (I). The Parliamentary Secretary proceeded:
    "I would emphasise as strongly as I can that I entirely agree with the remarks which have been made by some hon. Members regarding the need for bringing the employees in on that side. What I disagree with is the suggestion that they should be brought in, as such, to these consultative councils."— [OFFICIAL REPORT, Standing Committee E. 18th March, 1947; c. 320..]

    5.15 P.m.

    It is clear that in the mind of the Government the council is not concerned with the efficient running of the industry in the national sense, but only with the impact of the industry upon the consumer. It is not concerned with what a particular generating station does. We welcome the Amendment which the right hon. Gentleman has moved. It corresponds to and complies with a request that we put forward from our side of the Standing Committee. The only point where it is deficient is that indicated in an Amendment in our name to the proposed Amendment, after "agriculture" to insert "housewives." Fortunately for the Government, it is not likely to be called. [HON. MEMBERS: "Why 'fortunately'?"] Because it would presumably, in view of the Government's attitude towards the housewives, embarrass the Government if they found they had to comply with the request.

    I am the more surprised at the Minister omitting any proposal to include the housewives, because of the remark which he made just now towards the end of his speech in moving the Amendment. He said that he was anxious to cover all practical consumers when he was looking for these representatives. By far the majority of practical consumers of electricity in this country are the housewives. 'They probably know more about electricity than other classes, and they can be trusted in increasing number to do so when the right hon. Gentle- man, in his other capacity as the Minister of Fuel and Power, is able to provide a little more coal.

    In a recent speech even the Minister himself paid a tribute to the housewives. The right hon. Gentleman makes so many speeches, some optimistic and some pessimistic, that he may not be able to keep track of them. The speech to which I now refer was made on 14th June. He said:
    "Housewives have contributed much valuable advice from the stores of their experience and common sense, and they are working hard to assist."
    He evidently thinks more of housewives than does his right hon. and learned colleague, the Attorney-General. If the right hon. Gentleman thinks that the housewives have contributed much valuable advice from the stores of their experience, it seems odd that when he is laying down the people who are to be represented upon the consultative councils as practical consumers, he does not propose to avail himself of the housewives' advice and common sense. Despite the fact that the Amendment may not be called, I hope that the right hon. Gentleman in the light of the speech which I have quoted, will say that the omission is an oversight which he "will rectify by an Amendment in another place.

    Perhaps I had better dispose of the right hon. Gentleman, to begin with. I remember him, in the days of unemployment and squalor for which the right hon. Gentleman and his friends were primarily responsible. I shall not go into that matter, because I imagine it would be out of Order, or we might find ourselves in disorder. At any rate, the right hon. Gentleman must be asked to distinguish between ordinary, common-sense housewives of the country who deserve our support, and certain organisations which claim to represent housewives or alleged housewives but which are, as we know—I think I have the appropriate word—the maidservants of the Tory Party. If I accepted such an Amendment as is on the Paper, and if I were to make arrangements for the insertion of the word "housewives," I should be challenged immediately by the spinsters and by the single persons, who are consumers of electricity also and have as much right to be represented on the council, as consumers of electricity, as have the housewives.

    Local authorities are to be represented on the consultative committees as I have indicated already, and that is provided for in the Bill. There are many housewives associated with the local authorities, being members of those local authorities, and very valuable members indeed. I should not be at all surprised if, in appointing representatives on local authorities after consultation with the bodies concerned, we find quite a large number of housewives—

    —of the intelligent and non-Tory type on the consultative councils. There we must leave this matter of the housewives. Let us come to the major point under review. I fully understand the conception held by my hon. Friend the Member for Wimbledon (Mr. Palmer), who has great knowledge of this industry and of the employees in the industry. I appreciate the conception which is, in effect, put forward in order to create something akin to democratic control in the industry. He argues that the employees in an industry should be associated with the general activities of that industry. In fact, we have so provided in Clause 47 to which my hon. Friend referred. May I direct the attention of the House to what is in Subsection (I, b:)

    "the promotion and encouragement of measures affecting the safety, health and welfare of persons employed by the Electricity Boards"—
    that is very desirable—
    "and the discussion of other matters of mutual interest to the Boards and such persons"—
    that is the employees—
    "including efficiency in the operation of the services of the Boards."
    Those are very comprehensive words and go much further than anything attempted in the sphere of private enterprise. Already we find in connection with the nationalised mining industry that that conception is beginning to bear fruit. There is being promoted a better atmosphere and there are more consultations. There will have to be more consultations, but that will come in due course. The conception is here deployed and I hope it will come to fruition in due course. What my hon. Friends are seeking to achieve is that the workers should not be regarded merely as ciphers, whether they are in the employment of a private individual, a public utility company or a public corporation. They believe that a worker should have the status which enables him to be brought into every possible sphere relating to the activities of the industry concerned, while his knowledge should be placed at the disposal of the Board responsible for the supervision of the industry.

    When we come to the consultative council and ask the question, "How are these consultative councils to be different from the consumers' councils?" I can give the answer at once. Often in the past we have been told that the consumers' councils were merely eyewash. The consumers' councils have been a facade—a camouflage for the real purpose behind their creation. They met frequently, but they had no authority and their advice was disregarded. I have a much broader conception of consumers' rights than was reflected in the old consumers' council, and even in the case of the nationalised mining industry, where the consumers' councils are provided for and which are now in the process of being appointed, we expect that those bodies will express themselves, if necessarily forcibly, on matters which relate to the consumers' interest and will not be fobbed off by pious declarations by those responsible for the running of the industry or the service there.

    If hon. Members look at Clause 7 (4, a) they will see how comprehensive are to be the activities of the consultative councils. They are to concern themselves with
    "any matter affecting the distribution of electricity in the area, including the variation of tariffs and the provision of new or improved services and facilities within the area"
    That goes very far, and therefore, there is great substance in the claim that already we have made these consultative councils really live virile bodies, actively pursuing the interests of the consumer in the area.

    The question at issue is whether the employees of the area board in a particular area should be represented on these consultative councils, and I ask myself the question, "Why should they be represented on these area boards if provision is made in Clause 47 for consultation and discussion in the adequate presentation of the interests of the employee in regard to matters pertaining to health and welfare?" It seems, therefore, that it is redundant that they should be represented specifically on these consultative councils. I have provided in the proposal now before the House that labour along with other interests in commerce and agriculture should be represented on the consultative councils. I have been asked to define labour. Is there width or breadth in that definition? Perhaps I can give an empirical reply. When I appoint the consultative councils, what process will I envisage? I will first go to the local authorities or the organisation of local authorities if one exists in the area, and ask for their views about the persons who should be represented on the local authorities. Then I should approach representatives of certain indus-tries in the area, who may be concerned with domestic expansion or even with industrial expansion. Next I should approach the trade unions in the area, and perhaps the co-operative organisations who represent consumers, and any other consumers' organisation which is truly representative and ask them to make recommendations to me, reserving to myself the right of appointment.

    Did my right hon. Friend deliberately make the differentiation when he said that he would approach the trades unions and, "perhaps the co-operative organisations" ?

    5.30 p.m.

    I was not aware that I said "perhaps the co-operative organisations," and I will correct myself at once. Inasmuch as the co-operative societies can reasonably claim with substantial reasons that they represent a large body of consumers, they ought to be represented. I do not exclude any other representation by consumers' organisations if there are any, in the area. I will approach the trade unions. When I approach the trade unions in the area—or perhaps a trades council or some other trade union body—and ask them to make appointments on the consultative councils of representatives of labour, as indicated in my proposition, if they care to send a trade union secretary, that is not my concern if the person is worth while and has the qualifications. If they select two or three—I shall not specify the actual number—persons who are actually engaged in electricity activities under the direction or supervision of an area board, I will enter no caveat. I will leave it to them to make the recommendation, but I will not—I say this quite categorically to my hon. Friends—make an appointment on the consultative councils specifically and definitely from employees of an area board, because I think that would be improper. I am sorry that I must say so to my hon. Friends.

    On the other hand, I see their intentions and they are reasonable and good intentions, and, so far as I can comply with them, I shall certainly do so. Hon. Members know me well enough to know how anxious I am to secure the adherence and active assistance of employees in all industries, particularly in relation to nationalised undertakings. I shall do what I can to implement what I have said in the past in these matters. In those circumstances I beg my hon Friends not to press the matter, and I "presume that hon. Members opposite will not press me on the question of housewives. I think that in all the circumstances I have made the provision as comprehensive as it is possible to be, and with that I leave it to the House.

    I would like to add a few words of support to the plea made by my right hon. Friend the Member for Southport (Mr. R. S. Hudson) in favour of housewives. If we look at the classes included in the Amendment we see that each one of them —agriculture, commerce, industry and labour—are sections which use electricity, except for labour, for the purpose of producing something. They are not purely consumers who are consuming it for themselves. Labour is in another category and I agree with the right hon. Gentleman that it should be included, but he told us just now that he was going to approach the trade unions, and one of his objections to the housewives was that a certain proportion of them—and perhaps the majority of them— were the handmaidens of the Conservative Patty. What about the trade unions? We know that they are perhaps not the handmaidens of the Labour Party, but they are certainly the masters of the Government. Why is it an objection to the housewives that they might be Conservative and not an objection to the trade unions that they might be Labour? It cannot be an objection. The Govern- merit are very touchy about the subject of housewives.

    I must remind the hon. Member that the Amendment dealing with housewives has not been called. He can, therefore, only deal with that as a passing reference.

    Would I be in Order, Mr. Deputy-Speaker, in devoting the same amount of time to housewives as did the right hon. Gentleman?

    I am in some confusion about this because if the right hon. Gentleman made a passing reference of about four minutes, I assume that a passing reference of about four minutes on my part will also be in Order. The right hon. Gentleman is touchy about housewives. He is touchy about housewives because he has to follow in the way of that perpetual apologist, the Attorney-General. He is touchy about housewives, because if he were not touchy he would include them as they use an enormous amount of electricity. There are, as he suggested in his speech at Leyton, 40 or 50 women's organisations to support them. Those organisations represent the housewives. It has always been the objection to a sensible reform that it goes too far, raises a matter of principle or that other people will object. It is no objection to including housewives because the spinsters might object. One might think that the spinster who looks after a household is a housewife in that sense. Obviously, we cannot expect everybody on a consumers' council to have to produce their marriage lines, because they can be consumers of electricity whether they are married or not. It does not depend on the validity of their relations whether their relationship is that of mother or daughter, or whoever it is keeps the house That is only a debating point, and a very poor debating point.

    The truth of the matter is that there is a section of the community who use electricity purely as consumers and who are not on the productive side in the sense that they are producing like agriculture and industry. They are purely consumers, and it is in the interests of the industry that their views should be represented.

    So far as I understood, the right hon. Gentleman did not point to any organisation which covered them.

    Yes. The hon. Gentleman may not be aware that there is an association of women directly concerned with electricity supply and distribution—the Women's Electrical Association—and, of course, we should consult the Women's Electrical Association. Perhaps that never occurred to the hon. Gentleman.

    It did occur to me. The lady who is the head of that organisation deserves very well of this country for her work in that sphere, but she does not represent the housewife as a housewife. The lady I am thinking of is a very skilled "technician on the electricity side, if we have the same lady in mind.

    Why is it that the right hon. Gentleman refuses to admit that the housewives can contribute a lot to consultative councils? It is on them that any burden of increased rates will fall. If the dangers which we apprehend happen in this nationalisation scheme, it will be very valuable to have on the councils some level-headed intelligent women. Even if they are Tories, the right hon. Gentleman should not indulge in victimisation by saying that they are not to be on the councils because they are the handmaidens of the Tory Party. Even if they had said that nationalisation is leading to disaster, they should be included. I ask the right hon. Gentleman to reconsider the matter and to see whether there cannot be representatives of housewives on the consultative councils.

    Amendment agreed to.

    I beg to move, in page 10, line 43, at the end to insert:

    "but a member of a Consultative Council other than the chairman shall not by reason of his appointment as such a member be disqualified for being elected to, or for sitting or voting as a member of, the Commons House of Parliament."
    There is provision in the Bill which excludes hon. Members of this House from serving as members of the Central Authority or the area boards and acting as chairmen of consultative councils, but it occurred to me that we might be going a little too far if we sought to disqualify an hon. Member from serving as a member of a consultative council. In order to correct that defect in the Clause, I am moving this Amendment.

    I do not think the right hon. Gentleman has given any explanation of this Amendment. The effect, as he rightly said, is to enable hon. Members of this House to sit on these consultative councils, and that raises the issue whether they should be allowed to do so. There seem to me to be two objections. In the first place, hon. Members at the moment have all they can manage with their own legitimate work in this House, and very few indeed are in any position to take on and effectively discharge extra work outside. Therefore, there seems to be remarkably little case at the moment for facilitating their intrusion into other spheres of public work. Secondly, there is another objection, perhaps of more profound and permanent constitutional significance. Under subsection (9) provision is made that such people who serve on these councils may be paid expenses. It is, I suggest to the House, undesirable to extend the number of hon. Members who may be in receipt of money from Governmental agencies. It has been for 200 years the policy of this House to restrict, so far as possible, the number of hon. Members who shall be in receipt of remuneration of any kind from the Crown or from the Executive. That principle has been most rigidly maintained by this House, and it has necessitated specific Acts of Parliament in many cases to permit the creation of one additional Minister of the Crown. Now we have the right hon. Gentleman, as by a sidewind, and with a certain amount of casualness, proposing to introduce a provision under which hon. Members shall be in receipt of the payment of expenses from sources connected with his Department and the Electricity Authority.

    I am not suggesting for one moment that these small sums would be any element of corruption, but I am saying that it is undesirable in principle to increase the role of the Executive as paymaster with regard to hon. Members of this House, and unless the right hon. Gentleman can find stronger reasons than he has done, it seems somewhat extra- ordinary that he should be prepared, for convenience perhaps in one or two cases, to violate a constitutional principle of considerable respectability and age.

    I do not attach any great importance to this, but my prejudices are rather the same as those just expressed, and I would ask the right hon. Gentleman to consider whether there ought not to be second thoughts about this. I wonder if he would not find it possible to have second thoughts about this in another place. It cannot really be considered that there will be any considerable number of consultative councils which will be hopelessly debilitated by the absence of Members of Parliament and, on the other hand, there is the objection of principle which has been indicated, and I should have thought really it deserves rather more consideration than it has had.

    With apologies, Mr. Deputy-Speaker, I will only take one sentence because this I agree is an infinitesimal point, but perhaps it is part of my function to be pedantic about these things—will the right hon. Gentleman consult his draftsmen about the second word in the third line of his Amendment, as to whether the word after "disqualified" should not rather be "from" than "for"? We may as well get these things right, and I am inclined to think that it would be better that way. I hope he may look at it later.

    545 P.m.

    We are, of course, in rather a difficulty here because this is the process of the Minister in abolishing elected bodies and substituting for them nominated bodies, and as soon as he starts that he will be in difficulty. He is sweeping away the democratic process of election by which the local authorities ran the great public electrical bodies in the past, and is substituting for them these consultative councils which, as he has repeatedly said, are to be nominated by him.

    We know the principles upon which the Minister is working in these matters because he himself told the House last night:
    "I would not appoint somebody to one of the electricity boards in a representative capacity, if he had expressed himself as being against the provisions of the Bill and had declared that nationalisation was bound to prove a failure."—[OFFICIAL REPORT, 23rd June, 1947: Vol. 439, c. 117.]
    What we would like to know from the Minister is, does he attach the same importance to these consultative councils as he does to the boards, and does the same bar which he has put on the boards apply to the members he is about to attach to the consultative councils? If he could give us an answer to that, it would elucidate the point as to how the series of elections which the Minister will now conduct under his hat are to work. We should like to know, on this question of consultative councils, the principle upon which he will act?

    I will answer the question at once. I do not propose to appoint persons to these consultative councils without consulting with representative bodies in the area, and they will presumably make recommendations. I am not bound to accept the recommendations, but I shall take cognisance of them because the bodies concerned have greater knowledge of the persons in the area and their qualifications than I have. Therefore, there can be no question of discrimination against any individual on account of his politics. Indeed, I must have said that a score of times last night, on a few occasions when the right hon. and gallant Gentleman was present and on several occasions when he was absent, and I trust what I have just said will satisfy him.

    It is just because of those declarations which the right hon. Gentleman has made on many occasions 'when I was present, and no doubt on certain occasions when I was absent, that I am pressing him upon this occasion. He has said that he will take cognisance of the representations made by the local organisations, but that he does not feel himself necessarily bound to accept them. That is in the Bill. These are not representative institutions, these are nominated institutions. What I am trying to get at is the basis upon which he will work, because it is very important to know.

    The right hon. and gallant Gentleman is going right outside the terms of this Amendment. It is a very small point that is under discussion, namely, whether a member of a consultative council can or cannot be a Member of Parliament.

    Yes, Mr. Deputy-Speaker, and I was just coming immedi- ately to the point. The Corporation of Edinburgh is a local authority and has expressed itself in no uncertain way about the Bill. An hon. Member of this House is firmly convinced that the Bill will lead to disaster, and that nationalisation is a very bad thing, namely, the hon. Member for South Edinburgh (Sir W Darling). If the Corporation of Edinburgh desire to appoint the hon. Member for South Edinburgh as a member of that area board, will or will not the right hon Gentleman discriminate against him? It is a perfectly fair question which arises because it affects every hon. Member on this side of the House. The point is that the definition laid down by the right hon. Gentleman will, as far as I can see, exclude every hon and right hon. Member on this side of the House and include every hon. and right hon. Member on that side. Therefore, we are entitled to ask, is this the purpose or will it be the result of the Amendment? If so, it is obviously a serious departure from what has been previously the practice in the political life of this country.

    The right hon. and gallant Gentleman cannot enter into an argument on the matter. As I have said, this is a small issue—the question is whether a Member of Parliament can or cannot be a member of a consultative council.

    I agree it is a narrow point, Mr. Deputy-Speaker. I would say, however, that it is a narrow point raising a great issue. I see that the right hon. Gentleman offers to answer.

    The right hon. and gallant Gentleman has asked me if the Edinburgh Town Council, as one of the bodies in the area who are consulted about the persons to represent local authorities on the consultative council, made a recommendation that the hon. Member for South Edinburgh (Sir W. Darling), who is a member of the Conservative Party, should represent them on the consultative council, what I would do. My answer is this: I would not exclude the hon. Member on the ground that he was associated with the Tory Party.

    Although it is a narrow point it is a great issue, for all the Minister has said is that he would not exclude the hon. Member on the ground that he was a member of the Tory Party. I trust not, for indeed that would be a very flagrant piece of favouritism. But the right hon. Gentleman carefully hedged his answer about by many other avenues which he closed to the hon. Member for South Edinburgh. On the formula laid down by the right hon. Gentleman it would be possible and, indeed, legitimate for him to exclude any

    Division No. 276.]

    AYES.

    [5.52 p.m

    Adams, Richard (Balham)Edwards, A. (Middlesbrough, E.)Lawson, Rt. Hon. J. J
    Alpass, J. H.Edwards, Rt. Hon. Sir C. (Bedwellty)Lee, F. (Hulme)
    Anderson, A. (Motherwell)Evans, E. (Lowestoft)Lee, Miss J (Cannock)
    Anderson, F. (Whitehaven)Evans, John (Ogmore)Levy, B. W.
    Attewell, H. C.Evans, S. N. (Wednesbury)Lewis, A. W. J. (Upton)
    Austin, H. LewisEwart, R.Lewis, J. (Bolton)
    Awbery, S. S.Fairhurst, F.Lipson, D. L.
    Ayles, W. H.Farthing, W. J.Lipton, Lt.-Col. M
    Ayrton Gould, Mrs. B.Femyhough, E.Logan, D. G
    Bacon, Miss A.Field, Capt. W S.Longden, F.
    Baird, J.Fletcher, E. G. M. (Islington, E.)Lyne, A. W.
    Barnes, Rt. Hon. A. JFollick, M:McAdam, W.
    Barstow, P. G.Forman, J. C.McEntee, V. La T.
    Barton, C.Freeman, Peter (Newton)McGhee, H. G
    Battley, J. R.Gaitskell, H. T. NMack, J. D
    Beattie, J. (Belfast, W.)Gallacher, W.McKay, J. (Wallsend)
    Bechervaise. A. EGanley, Mrs. C. S.McKinlay, A. S.
    Benson, G.George, Lady M. Lloyd (Anglesey)McLeavy, F
    Berry, H.Cibbins, J.Macpherson, T. (Romford)
    Beswick, F.Gilzean, A.Mainwaring, W. H
    Bevan, Rt. Hon. A. (Ebbw Vale)Glanville, J. E. (Consett)Mallalieu, J P W
    Binns, J.Goodrich, H. E.Mann, Mrs. J.
    Blenkinsop, AGreenwood, A. W. J. (Heywood)Manning, C. (Camberwell, N.)
    Blyton, W. R.Grey, C. F.Manning, Mrs L (Epping)
    Bowden, Flg.-Offr. H. WGrierson, E.Mathers, G
    Bowles, F. G. (Nuneaton)Griffiths, D. (Mother Valley)Mealand, H. M
    Braddock, Mrs. E. M. (L'pl, Exch'ge)Griffiths, Rt. Hon. & (Llanelly)Mellish, R. J
    Braddock, T. (Mitcham)Grest, Dr. L. HadenMesser, F
    Bramall, E. A.Gunter, R. JMiddleton, Mrs L
    Brook, D (Halifax)Guy, W. H.Mikardo, Ian
    Haire, John E. (Wycombe)
    Brooks, T. J. (Rothwell)Hale, LeslieMillington, Wing-Comdr. E. R.
    Brown, George (Belper)Hall, W. G.Mitchison, G. R.
    Brown, T. J. (Ince)Moody, A. S-
    Bruce, Maj. D. W T.Hamilton, Lieut.-cot. R.Morgan, Dr H B
    Buchanan, GHardman, D R.Morley, R.
    Byers, FrankHardy, E. A.Morris, Lt.-Col. H. (Sheffield, C.)
    Callaghan JamesHarrison, JMorris, P. (Swansea, W.)
    Carmichael, JamesHastings, Dr. SomervilleMorris, Hopkin (Carmarthen)
    Castle, Mrs. B. A.Herbison, Miss M.Moyle, A.
    Chamberlain, R. AHewitson Capt. MNally, W.
    Champion, A. Hicks, GNaylor, T. E.
    Chater, D.Hobson, C. R.Neal, H. (Claycross)
    Chetwynd, G. RHolman, P.Nichol, Mrs M. E. (Bradford, N.)
    Cluse, W. S.Holmes, H. E. (Hemsworth)Nicholls, H. R. (Stratford)
    Cocks, F. SHouse, G.Noel-Baker, Capt. F E (Brentford)
    Collindridge, F.Hoy, J.Oldfield, W. H
    Collins, V. J.Hubbard, 1Oliver, G. H
    Colman, Miss G. M.Hudson, J. H. (Ealing W.)Orbach, M.
    Comyns, Dr. L.Hughes, Hector (Aberdeen, N.)Paling, Will T. (Dewsbury)
    Corlett, Dr. J.Hughes, H. D. (Wolverhampton, W.)Palmer, A M. F.
    Corvedale, ViscountHutchinson, H. L. (Rusholme)Parkin, B T
    Cove, W. G.Hynd, H. (Hackney, C.)Paton. J (Norwich)
    Crossman, R. H. S.Hynd, J. B. (Attercliffe)Pearson, A.
    Daggar, G.Irving, W. J.Peart, Thomas F.
    Daines, P.Jay, D. P. TPoole, Major Cecil (Lichfield)
    Dalton, Rt. Hon. H.Jeger, G. (Winchester)Popplewell, E
    Davies, Ernest (Enfield)Jeger, Dr. S, W (St. Pancras, S.E.)Porter, G (Leeds)
    Davies, Harold (Leek)John, WPrice, M. Philips
    Davies, Hadyn (St. Pancras, S.W.)Jones, D. T. (Harllepools)Proctor, W. T
    Davies, R. J. (Westhoughton)Jones, P. Asterley (Hitchin)Pryde, D. J.
    Deer, G.Kendall, W. DPursey, Cmdr. H.
    Delargy, H. J.Kenyon, C.Randall, H. E
    Diamond, JKing, E. M.Ranger, J
    Dodds, N. NKinley, J.Rankin, J.
    Driberg, T. E. N.Kirby, B. V.Reeves, J.
    Dumpleton, C. W.Lang, G.Robens, A.
    Ede Rt. Hon. J CLavers, SPoberts. Emrys (Merioneth)

    hon. Member on this side of the House. I say that he is opening the door to a serious piece of political favouritism and patronage, with which we cannot agree, and we propose to divide against this proposal.

    Question put, "That those words be there inserted in the Bill."

    The House divided: Ayes, 279; Noes, 105.

    Rodertson, (Berwick)stokes, R. RWatkins, T. E
    Rogers, G. H R.Stross, Dr BWatson, W. M.
    Ross, William (Kimarnock;Stubbs, A EWebb, M. (Bradfora, C.)
    Royle, CSwingler, SWeitzman, D
    Sargood, RSylvester G. OWalls, P L (Faversham)
    Scollan, ISymonds, A L.West, D. G
    Scott-Elliot, WTaylor, H B (Mansfield)Westwood, Rt. Hon. J
    Segal, Dr STaylor, R, J. (Morpeth)White, H. (Derbyshire, N.E.)
    Shackleton, E. A. ATaylor, Dr S. (Barnet)Whiteley, Rt. Hon. W.
    Sharp, GranvilleThomas 0. E. (Aberdare)Wigg, Col. G. E.
    shawcross, C. N (Widnes)nomas, I. 0. (Wrekin)Wilkes, L
    Shinwell Rt Hon EThomas, John R. (Dover)Wilkins, W. A.
    shurmer P.Thomas, George (Cardiff)Willey, F. T. (Sunderland)
    Silverman, J. (Erdington)Thomson, Rt, Hon. G. R (Ed'b'gh, E.)Willey, 0. G. (Cleveland)
    Simmons, C J.Thurtle, ErnestWilliams, J. L. (Kelvingrove)
    Skeffington, A. MTiffany, S.Williams, W. R. (Heston)
    Skinnard, F. WTimmons, J.Williamson, T
    Smith, C. (Colchester)Titterington, M TWillis, E.
    Smith, H. N (Nottingham, S.)Tolley, L.Wills, Mrs. E P
    Smith, S. H (Hull S.W)Turner-Samuels, MWoods, G. S
    Snow, Capt. J. WVernon, Maj W FWyatt, W.
    Solley, L J.Viant, S P.Yates, V. F.
    Soskice, Maj Wadsworth, GYoung, Sir R (Newton)
    Sparks, J. AWalkden, E.Zilliacus, K.
    Stamford, WWalker, G. H
    Stephen, C.Wallace, G- D. (Chislehurst)TELLERS FOR THE AYES
    Stewart Michael (Fulham, E.)Wallace, H W. (Walthamstow, E.)Mr. Joseph Henderson and
    Mr, Hannan.

    NOES

    Amory, D. HeathcoatGalbraith, Cmdr T. OMarshall, S. H. (Sutton)
    Assheton, Rt. Hon. RGammans, L DMedlicott, F.
    Baldwin, A. E.Grant, LadyMorrison, Maj. J. G. (Salisbury)
    Barlow, Sir J.Grimston, R. V.Mott-Radclyffe, C. E
    Beamish, Maj. T. V. H.Harvey, Air-Cmdre. A. VNeven-Spence, Sir B.
    Bennett, Sir P.Haughton, S. G.Noble, Comdr. A. H. P
    Birch, NigelHeadlam, Lieut.-Col. Rt. Hon. Sir CO'Neill, Rt Hon Sir H
    Boles, Lt.-Col. D. C. (Wells)Hope, Lord JOsborne, C.
    Bower, N.Hudson, Rt Hon. R S. (Southport)Peto, Brig. C. H M.
    Boyd-Carpenter, J. A.Huid, A.Pickthorn, K
    Braithwaite. Lt. Comdr. J. G.Hutchison, Lt.-Cm. Clark (E'b'rgh W.)Prior-Palmer, Brig. 0.
    Bromley-Davenport, Lt.-Col WHutchison, Col. J. R. (Glasgow, C.)Raikes, H. V.
    Buchan-Hepburn, P. G. TJarvis, Sir JRayner, Brig R
    Bytcher H WJeffreys, General Sir GReed, Sir S. (Aylesbury)
    Challen, C.Kerr, Sir J. GrahamRobinson, Wing-Comdr Roland
    Channon, H.Lambert, Hon. G.Ropner, Col L.
    Clarke, Col. R SLancaster, Col. C. G.Ross Sir R. D. (Londonderry)
    Clifton-Brown, Lt.-Col. GLangford-Holt, J.Savory, Prof. D. L
    Conant, Maj. R. J. E.Law, Rt Hon. R. KScott, Lord W.
    Corbett, Lieut.-Col. U. (Ludlow)Lennox-Boyd, A. T.Smiles, Lt.-Col. Sir W
    Crosthwaite-Eyre, Col O. ELindsay, M. (Solihull)Snadden, W. M.
    Crowder, Capt John ELinstead, H. NSpearman, A. C. M
    Cuthbert, W. N.Low, Brig. A. R. WSpence, H. R.
    Darling, Sir W YLucas-Tooth, Sir H.Stanley, Rt. Hon. 0
    Davidson, VisncountesMacAndrew, Col. Sir CStewart, J. Henderson (Fife, E.)
    Digby, S. WMcCallum, Maj. D.Strauss, H. G. (English Universities)
    Dodds-Parker, A. DMacdonald, Sir P (I of Wight)Sutcliffe, H.
    Drayson, G BMackeson, Brig. H. RThornton-Kemsley C N
    Drewe, C.McKie, J H. (Galloway)Touche, G C.
    Duthie, W. SMaclay, Hon. J. SVane, W M. F.
    Eccles, D. M.MacLeod, JWalker-Smith, D.
    Eden, Rt. Hon. A.Macmillan, Rt. Hon Harold (Bromley)Ward, Hon. G. R.
    Elliot, Rt. Hon. WaiteMacpherson, N. (Dumfries)Wheatley, Colonel M J
    Foster, J. G. (Northwich)Maitland, Comdr. J. W.
    Fraser, H. C P. (Stone)Manningham-Butler, R. E.

    TELLERS OF THE NOES

    Fraser, Sir I (Lonsdale)Marshall, D. (Bodmin)Mr. Studholme and
    Major Ramsay.

    6.0 p.m.

    I beg to move, in page II, line 27, at the end. to insert:

    "(7) Each of the said Councils shall keep a register Which shall be available for inspection at all reasonble times and without charge, by the owner or occupier of any premises within the area of such Council, and shall record in such register a copy of every such representation to them as is referred to in subsection (4) of this section, together with the names and adresses of the persons by whom it was made, the dates on which it was received and considered, any conclusions thereon notified by them to the Area Board or to the Central Authority, any conclusions thereon notified to them by the Area Board, any directions given thereon by the Central Authority, and the date on which notification of each such conclusion or direction was received by the Council."

    It will be for the convenience of the House if, with this Amendment, we take two other Amendments. One is in the name of the Minister of Fuel and Power—in page 11, line 35, at end, insert:

    "(8) A Consultative Council may, after con sultation with the Central Authority, make representations to the Minister on any matters arising out of representations made by them to the Central Authority under subsection (6) of this section, and if it appears to the Minister, after consultation with the Area Board and with the Council, that a defect is disclosed in the Area Board's general plans and arrangements for the exercise and performance of their functions under this Act, he may notify the defect to the Central Authority, and thereupon the Central Authority shall give to the Area Board such directions as they think necessary for remedying the defect, and the Area Board shall give effect to any such directions."
    The other is in the name of the right hon. Member for Southport (Mr. R. S. Hudson), in page II, line 35, at end insert:
    "(8) The Central Authority shall, when giving to the Area Board any directions under the last foregoing Subsection, furnish a copy thereof to the Council and if, at any time after the expiration of two months after they have made representations to the Central Authority, the Council shall represent to the Minister that they are dissatisfied with such directions, or with the failure of the Central Authority to give directions, the Minister shall, if so required by the Council, cause an inquiry to be held and may require the Central Authority to give to the Area. Board such directions as he shall think fit"

    I am grateful for your guidance, Mr. Deputy-Speaker. It would perhaps save the time of the House if I began at the end, and very shortly indicated the argument for the second of the Amendments in the name of myself, my right hon. Friend and hon. Friends. The Minister has made it quite clear that he intends these consultative councils to be, in effect, at any rate, rather more than consultative. He has used rather striking words which from any other mouth might even perhaps have seemed exaggerated. He said:

    "—the consultative councils will be endowed with powers and will be called upon to undertake activities far wider than in the case of the consumers councils"
    Later, he said:
    "Will hon. Members please note how wide their powers are? They have to deal with any matter affecting the distribution of electricity …"
    Later he made his statement more- specific. He said that there was to be:
    "…a fully-fledged partnership with the area boards …We decided to make the Central Authority responsible for generation and the area boards responsible for distribution, and perhaps also partly responsible for generation."—[OFFICIAL REPORT, Standing Committee E, 13th March, 1947. c. 276-8.]
    He then went on to describe the relations of the consultative councils with those bodies, so that-it is quite plain that in the contemplation of the Minister these councils are meant to have a kind of effectiveness not perhaps often associated with consultative councils. He told us that hitherto consumers' councils had always been eyewash. I was not sure whether he was referring to the Coal Act. Perhaps we have not had enough experience to know about that, but I do not know to what other consumers' councils he was referring.

    If these consultative councils are to have anything like these activities and powers, which the Minister may have been rather exaggerating—indeed he must have been, if they are to have activities and powers they cannot 'be precisely described as consultative—what they will most need will be information, to know what happens. That is the aim and object of the second of these Amendments. The operative words are:
    "The Central Authority shall, when giving to the Area Board any directions …furnish a copy thereof to the Council and if …the Council …are dissatisfied with such directions, the Minister shall …cause an inquiry to be held. …"
    I think that is a fair synopsis of the proposal in the second of our Amendments. The main object of the Amendment is to make sure that the consultative councils do know. Our argument is strengthened by the Minister's new Subsection, which, I take it, is shortly to be moved. How can these consultative bodies decide to proceed further under that new Subsection unless they can get at the sort of information for which we are trying here, in our proposed Subsection (8), to provide the machinery? That is the short point of the second Amendment, and I hope that that will be a sufficient explanation.

    I turn back to the earlier of our two Amendments, on which I think it is necessary to be very slightly more lengthy. These are the operative words:
    "Each of the said Councils shall keep a register …available for inspection …and shall record in such register a copy of every such representation to them as is referred to in subsection (4) …together with …any conclusions thereon. …"
    In other words, the object is to make it possible for the ordinary member of the public, the private or corporate consumer of electricity, to know what happens to his representations. As the matter stands at present, he represents that in some way or another the service is inefficient or excessively dear, but he does not know what happens next. Our proposal is that there should be a register kept which would enable him to see what happens to his representation, if anything does happen. I suggest that that really gives a kind of democratic control over the matter which really is not provided anywhere else in the Bill.

    I hope that hon. Gentlemen opposite will not think I am being excessively controversial if I say to the Minister that it really seems that such provision is unusually necessary and is made more unusually necessary with every utterance from the Minister. Again he told us this afternoon that he might perhaps have a town council advising him to appoint a housewife to one of these advisory committees, but he said, "Not a Tory housewife, but a housewife who is of non-Tory character." I ask hon. Gentlemen opposite to-think that those of us who are opposed to Socialism are nevertheless honest in our desire that where anything is socialised the resulting arrangements should be as good as they can possibly be made. If that is so, one of the main charges against nationalisation has always been, and must always continue to be, that we get precisely this sort of thing, that it is this way we drift into the one-party State. One starts by saying that we cannot even have a housewife on an advisory committee about electricity in East Anglia unless the Minister first vets here to discover that she toes the party line. We have had that said today. Last night, the Minister said, talking not of these councils, but of other boards:
    "—it would be quite improper to appoint to such boards a person who was definitely opposed to the nationalisation of the industry."—[OFFICIAL REPORT, 23rd June, 1947; Vol. 439, c. no.]

    Hon. Members opposite evidently think that is wise. The Minister has said that he did not say that, but there it is in HANSARD, and it is my own recollection of what he said. If there is any risk at all, the Minister has made it doubly clear that there is a risk with him. It is usually polite to say on these occasions, "We have no suspicions or doubts about the representative of the Ministry now before us, but he is not eternal, he may pass away one of these days, and who knows what sort of person we may get." I admit I have no such fears today. That is not my argument. My argument is that the existing Minister has made it quite clear that he will have such considerations in mind in making these appointments.

    Then what sort of safeguard in future is an electricity consumer who does not toe the party line going to have? If he and his wife do not toe the party line then they cannot sit on an advisory council. We know that they cannot sit in a managerial capacity; we were told that last night. The existing statutory safeguards, all the safeguards that arose out of the existence of private enterprise, out of the possibility of competition from gas and so on—all those safeguards are to go. I suggest that the only genuine safeguard yet proposed to be put into this Bill is the one which I am now proposing. That is to say, where private individuals, or others for that matter, including corporations, have made any representations to the consultative councils, whose power and influence the Minister rates so high— where they put in special representation, there should be a simple method by which they should be able to follow the fate and effect of those representations. That is the short point of these two Amendments, and particularly of the first, with which I am now dealing.

    I think there are other arguments in its favour too. There would be increased public confidence in the councils and less risk of the councils dwindling into nothingness or, at least, into insignificance. I think that clearly such provisions as I am recommending to the House would prevent unnecessary and double work. It would make it possible, where a question arose, for it to be dealt with by a very simple means of centralising representations and so on. It would be a very simple job to note what questions were arising here and there, so that there would be no need to have the same sums worked out in five or six different places.

    Does the hon. Gentleman propose that each everyday trivial complaint about electricity service should go into this register? Surely the book would be simply full of complaints.

    I like what the last sentence seemed to mean; I understand the hon. Lady the Member for Epping (Mrs. Manning) knows what the hon. Member for Wimbledon really meant.

    It is the hon. Member for Cambridge University who does not know.

    Taking the words on their face value, I think there is something in what was said. But I am a little surprised at that particular intervention because the hon. Member had the advantage of sitting on the Committee upstairs If he will read the Committee HANSARD he will see the distinction made by the Minister between the trivial everyday complaints and the other sort and their treatment. I do not think that difficulty need make the House hesitate. I think also that the proposal would tend to discourage frivolous or ill-founded complaints because people would not like to be seen trying publicly to make trouble where no trouble was I think it would lead towards consistency, towards the building up of a general case law in these matters. I ask the House, if it is possible to put aside party prejudice in this matter, to believe that we are not here trying to make it difficult to socialise, though we think it wrong to socialise the industry; what we are trying to do is to make it certain that, if socialised the industry-must be, then still the ordinary person should have some chance not only of having, but of knowing and feeling and being seen to have, a method of influencing the way in which provision of this necessity is managed with regard to his own particular or local interest.

    I beg to second the Amendment.

    6.15 p.m.

    I very much hope that after the modest and persuasive speech of my hon. Friend the senior Burgess for Cambridge University (Mr. Pickthorn), the Parliamentary Secretary, in his own interest and in the interests of the Minister, will consider this Amendment very carefully. In my view it is most constructive, and I think the Minister should regard it with serious attention. My hon. Friend appealed to him to approach it from a non-party point of view. It is true that all of us on this side of the House, and my hon. Friend in particular, are wholeheartedly opposed to this Measure, as we are to Socialism in all its aspects, but there are very many people throughout the country who are not committed to either of the two parties. They are watching this Bill very carefully. I am now speaking of the private consumer rather than the corporate bodies to which my hon. Friend referred. They are watching because they hope and believe that this Measure will bring to them a more efficient and cheaper supply of electricity than they had before.

    It is significant that the very first Amendment we put down on the Committee stage of the Bill was to ensure to the general public a cheap and abundant supply of electricity. That was turned down upstairs somewhat ruthlessly. I hope that this Amendment, which seeks to do the same kind of thing by another method, will obtain a more sympathetic hearing from the Minister. I have had the honour to represent two counties in rural Scotland for a number of years. In one of them there has been considerable complaint for a long period of time from private consumers regarding what they consider the excessive rates charged for the electricity supplied to them. It is just this kind of people who will benefit if the Amendment to ensure that these councils should keep a register is approved. I hope I am not anticipating what the Minister will say, but why should a Minister, especially a Socialist Minister, object to the keeping of a register? They always claim specially to speak in the name of the people, the consuming public. In the past they have never been averse to increasing the number of secretarial staffs or civil servants, so why should they object to this proposal?

    Of course, I myself object to any increase in bureaucracy but I think that if we are to have it at all, any increase in the secretarial staff caused by the acceptance of this Amendment will prove to have been amply justified at the end of the day. I am sorry to keep the hon. Member for Epping (Mrs. Manning) waiting for another minute. Judging by the alacrity with which she rose I hope that she intends to show the same eagerness as hon. Members on this side of the House that the Minister should accept this Amendment. I end by saying that I believe that it is in the interests of the public as a whole, particularly in the interests of the poorer sections of the consuming public, that this Amendment should be approved.

    Not having had the advantage of sitting on the Committee upstairs, I do not quite know how it is intended to draw a line between the hundred and one frivolous and vexatious complaints which the ordinary man in the street and his wife make at the electricity offices every day, and the broad questions of policy to which I understand the hon. Gentleman was referring. It is obvious that minor complaints occur every day which do not affect the whole policy of the running of this industry. They are of a frivolous and vexatious kind. Therefore, it surprises me that any hon. Member opposite should have suggested that a register should be kept for the ordinary general complaints from the man in the street. To do so would be to do the very thing about which they are constantly complaining. It would be necessary to keep a hoard of officials in order to register the complaints.

    Does the hon. Lady by her argument suggest that the complaints of these poor people, the very genuine complaints which arise from great hardship, should go unregarded?

    I did not suggest anything of the kind. I was following the argument of the senior Burgess for Cambridge University (Mr. Pickthorn) who said that in the Committee upstairs, of which I was not a member, a distinct division was drawn between that kind of complaint and the broader more general complaints on policy. The consultative committees will have nothing to do with political beliefs. Not at any time whilst I have been in the House, or whilst looking through the records of Committees upstairs, has it been suggested that there should be any political purge of these consultative committees—

    That is pure imagination on the part of the Opposition. The only thing that fell from the lips of the Minister was that he would not place on the boards people who had expressed an absolute antipathy to nationalisation, and who, therefore, could not be expected to carry out the work of these boards in the way in which it should be done; but that does not mean that there would be any purge because of their political prejudices. There may be some people on this side of the House who do not believe in the nationalisation of the electricity industry. I do not know; there may be but this question certainly did not extend in any sense at all to the consultative committees, and I think that—

    Will the hon. Lady permit me? She said it did not extend to the consultative committees. Will she permit me to remind her that the Minister said that he would be influenced by, or might be influenced by a municipality to appoint a housewife but not a housewife of a non-Tory type? My recollection is quite clear on that point.

    I am very glad that J was able, with my own ears, to hear what he did say. What he said about this matter was that he would not necessarily be influenced by a member of the Housewives' League. She may be a member of a co-operative society, but he may have no knowledge of that society—[Interruption.] Why should hon. Members oppo.-site begin to worry at the mention of co-operative societies?

    May I interrupt the hon. Lady? She says she heard what the Minister said with her own ears. Surely, then, she heard the term "housewives of a non-Tory character"?

    That is quite a different matter. Unfortunately, the term "housewife," which is an honourable term, has been dragged through this House on a purely political basis, and I am very sorry—

    I really must bring the hon. Member back to the Amendment before the House. We are not discussing housewives.

    I thank you, Mr. Deputy-Speaker, for that. The point at issue is that, if this book is to be kept open, and is to have written in it every day, after the fashion of the Recording Angel, all the frivolous and vexatious complaints which people may make about electricity supply—which they are doing today though, no doubt, they will not do it as much under nationalised industry as under private industry—I think hon. Members who are supporting the Amendment are only asking for something which will be abused and will only produce frivolous and vexatious complaints. I therefore hope the Minister will reject the Amendment.

    The suggestion has been made that we should all approach this matter in a non-party spirit, but I am bound to say that the speech which preceded, that remark could hardly be calculated to encourage a non-party attitude in anybody. The remarks of certain hon. Members about my right hon. Friend were a travesty of what took place. It is perfectly true, in passing, as the right hon. Gentleman the Member for Southport (Mr. R. S. Hudson) knows perfectly well, that a kind of joke often passes between the two Front Benches. My right hon. Friend said, in discussing the type of housewife who may go on a consultative council, that he meant a housewife not, of course, of the Tory type. What he meant by that was the type of person who really is not a housewife at all and does not know the difficulties under which the real housewife labours. [An HON. MEMBER: "Rubbish."] I am simply explaining what my right hon. Friend said, and, as the hon. Member was not here, he does not know whether it is rubbish or not. I do not want to be drawn into what is a complete side-issue in this matter. We axe discussing three Amendments. The first, put down by the Opposition, to page II, line 27, provides that the councils shall keep a register. The second, which is in the name of my right hon. Friend, proposes that the consultative councils may, in effect, appeal to the Minister, thus carrying out, incidentally, a promise to consider an Amendment of this kind which he gave during the Committee stage. The third Amendment. which is put down by the Opposition, I think may fairly be described as an alternative method of achieving somewhat similar results. I would like to deal with the first Amendment separately, and then with the other two.

    I want to emphasise once again that it is our desire that these councils-and my right hon. Friend has said this again and again—should work well, be vigorous, and keep in touch with consumers. We welcome any suggestions from any part of the House which will make it easier for them to do this, and which will improve their prospects, but we must be sure, in considering any proposals of this kind, that they will really achieve this object, and that they do not, in effect, tie down the councils in matters of procedure and do not strangle them in red tape. No doubt, hon. Members put their names to the first Amendment assuming that complaints and representations made by consumers would, in the first place, always be made in writing. What is really the assumption of the Amendment is that they would all be considered by the main consultative council; but I would suggest to them that, in practice, neither of these two things is very likely.

    The hon. Member for Epping (Mrs. Manning) asked whether it was really seriously contended that every little frivolous complaint should be put down in this book. I have said in Committee upstairs, and I do not think that anybody disagrees, that, obviously, the first action which a consumer who is dissatisfied will take is not to rush off to the consultative committee. He will, in fact, go to the area board's offices in precisely the same way as he now goes to the municipal or company office and make his complaint. In the second place, supposing that he is dissatisfied with his treatment by the local office of the area board, under the Bill, as now amended in Committee, it is provided that every consultative council shall prepare and submit to the Minister a scheme for the appointment of district committees. Therefore, his next step is not to go to the main consultative council, but to the district committee, and it is there, I suggest to hon. Members opposite, that the more important complaints which have not been settled at the local office level will emerge; but, there is nothing, of course, about district committees in the Amendment which we are discussing.

    Again, it is well known, I suppose, to a good many hon. Members that constituents frequently prefer to see them personally and make oral representations on all sorts of matters and it is in precisely the same way, I imagine, that it is likely that consumers will make their complaints. It is not likely that they will give all their complaints in writing, even to a district committee, and I do not see why that should be assumed. Indeed, the implication rather surprised me in view of the dislike which the Tory Party are alleged to have of bureaucracy and red tape. They are rather assuming that everything is to be in writing and that a form would have to be filled in before anyone could make an application

    6.30 p.m.

    Will the hon. Gentleman forgive me? He is rather unchivalrous in destroying his supporter from behind He ought, at least, to read this thing carefully. What we are talking about here are the complaints made to this advisory body. I am glad that he explains the distinction between these complaints and those made at two lower levels which, it is hoped, will save it the more numerous and less important ones. But that makes the argument which the hon. Gentleman is addressing to the House entirely false.

    If the hon. Member will allow me, he will find that I am coming to the point which he makes. However, it was necessary to correct the false impression which his own speech created. There is no reason why we should formalise this process. But there is another matter which is also really ignored in this Amendment. It is assumed that every complaint is actually dealt with by the council itself. If I may say so, that is really carrying the conception of part-time bodies to an absurd extent. Obviously, a large number of these complaints will be dealt with by officials, and it is proper that they should be so dealt with, but, again, if one is to go by the Amendment. it is necessary to provide exactly what the council thought about a particular complaint. Of course, many cases will never reach them at all.

    The hon. Member the senior Burgess, for Cambridge University said, in effect, just now, that he accepted my version of what would happen. Presumably, therefore, what he is concerned with in this Amendment are only the representations which actually reach the main consultative council. That may be a possible interpretation. If that is so—and it is also a question of the complaints which are considered by them at the centre—what he is really seeking is to make available to the public the proceedings of the councils. There is not very much difference in that. By far the greater part of their time will, no doubt, be taken up in considering representations made to them, and that is really what the Amendment suggests. That, at least, is something worth considering.

    What is quite out of the question, m my opinion, is, as my hon. Friend suggested, that every conceivable complaint which comes through all these various district committees should somewhere be recorded. If that is the idea, it is tantamount to saying that the whole of the files of these district committees and consultative councils should be open for inspection. I do not think that that can be seriously maintained. I see the right hon. Gentleman opposite nodding his assent, and we can, therefore, consider the matter in a much narrower context.

    On that point, I would like to submit to the House these considerations. Firstly, it may not always be desirable that these records of proceedings should be made public. We know quite well that there is a provision in the Bill for the Minister to give directions to the central authority on security grounds to refuse to disclose directions which he has given on security grounds. This is not, if I may say so, a completely academic matter. For instance, supposing that a body of consumers complained because in some other part of the area more rapid development was taking place. It may well be that for reasons of national security it had been found necessary to develop one part of the country before another, but it would be most unwise and undesirable for that information to become publicly known. It would be necessary, therefore, to keep it from the public. In any case, surely this is not a matter which we need to put into the Bill. We are really concerned here with the proceedings of the councils. Some of those proceedings will be laid down under regulations made under Subsection (I2) of this Clause. For the rest, they will be left, as they should be left, I suggest, to the consultative councils themselves.

    May I now turn briefly to the other two Amendments? As those who were Members of the Committee will recall, I promised that we would consider an Amendment which, in effect, would enable the consultative council, if it were dissatisfied with what the central authority had said or done as a result of its representations, to go to the Minister. We have provided for that in our Amendment, and I think that hon. and right hon. Gentlemen will agree that we have drawn the Amendment pretty widely. It they are dissatisfied on any matters arising out of representations made by them—that would include, incidentally, the point of not being informed—it would be perfectly proper for them to go to the Minister and complain. If the Minister is satisfied that they have made their point, and if a defect is disclosed in the area board's general plans, he can then tell the central authority that they must put it right. I think that really gives exactly the right relationship between the consultative council,' the Minister, the central authority, and the area board. We do not want the consultative council coming along and expecting the Minister to intervene in every single individual case. That would be an impossible situation, and I do not think that the right hon. Gentleman or any of his hon. Friends would press for that. We say that, if, as a result of these representations, it is discovered that there is something wrong with the plans and arrangements, then the Minister steps in and says, "You must put this right." I suggest that is a more satisfactory way of doing it than the alternative suggested by the Opposition. On those grounds, I must asked the House to reject this and the other Opposition Amendment.

    If I am in Order, Mr. Speaker, I would now like to move our Amendment, but I should like to have your guidance in the matter.

    On a point of Order. I should like to ask for your Ruling about that, Mr. Speaker. Can the hon. Gentleman move another Amendment before this one is disposed of?

    The hon. Gentleman was asking a question, but the hon. Gentleman the senior Burgess for Cambridge University (Mr. Pickthorn) got up on a point of Order before he had finished.

    I think it was suggested that that is what I should do. I should be glad to have your guidance, Sir.

    The Amendment must be moved after this Amendment which is before the House has been disposed of.

    In that case, I would conclude by saying that I feel that these other Amendments are unnecessary and bureaucratic, and that our Amendment gives us all we need in the matter.

    The Debate, of course, is to be taken generally to cover a fairly wide field, although I understand that the other Amendments are to be moved formally. The speech which the Minister has just addressed to the House is a striking example of the difficulties into which the Government are being led by the procedure which they have now adopted, that is to say, the procedure of destroying representative institutions and then attempting to substitute nominated bodies. Already 66 per cent. of the electricity in this country is supplied by public bodies whose proceedings are conducted in public with the public having full access to those proceedings which are in print. The Minister has just made a suggestion, as a great concession that the public might be allowed to learn, after these bodies have discussed and decided matters, what they have been discussing and deciding. New bodies —according to the Minister's definition, the consultative councils—are to succeed and, indeed, to be superior to the old elected local authorities of this country under whom, as I say, 66 per cent. of the electricity supplied in this country is provided at the moment.

    The Minister's suggestion is all the more extraordinary because when we were in Committee he made it very clear that he was in great difficulties in this matter. He said: :
    When we consider the present set-up of the municipalities, we find there are undoubtedly great advantages in having an electrical committee, which represents the consumers, directly in touch with their own officials who are running the show to a large extent. We think it would be difficult to put it into the Bill, but we think some arrangements might be made at the district level for the district offices of the Area Boards to be in touch with these district committees. I have had municipal engineers coming up to me and saying it is very convenient for the consumer to be able to go to the committee and ask for an opinion on some local point. We find it difficult to provide for that in the Bill."
    He went on to say:
    "We do not regard district committees or consultative councils as having any executive authority."
    That is a distinction between those bodies and the local authorities who were able not merely to receive complaints but to act upon and remedy them. He continued:
    "They are purely advisory bodies, and they must remain so, but as such we believe they will perform a useful function. We do not claim that this experiment is bound inevitably to succeed.— [OFFICIAL REPORT, Standing Committee E, 18th March, 1947; c. 300.]
    On these shadowy grounds the Government are taking away the democratic control of 66 per cent. of the electrical supply of this country from the bodies who for 50 years have been operating it under every kind of statutory safeguard in this House. The Government are repealing all those statutory safeguards, and asking us to agree to committees which will operate in the fettered way in which the Clause and the Minister's Amendment makes it clear they will operate. Is it surprising that we boggle at the proposal? The Minister's Amendment which we are discussing, but upon which we shall not vote until later, says:
    "A consultative Council may …make representations to the Minister on any matters arising out of representations made by them to the Central Authority …and if it appears to the Minister …that a defect is disclosed …he may notify the defect to the Central Authority."
    Every member of the consultative council is to be appointed by the Minister and is to be subject to mental tests of one kind or another, which the Minister this afternoon has declared himself unable to indicate to the House. If this tame rabbit gets up on its hind legs and chooses to go through a few perfunctory jumps, the Minister may or may not pay attention to its performance. The municipalities of London, Manchester, Leeds, Glasgow, Edinburgh and Aberdeen have, in their day, had power and influence and have not hesitated to make representations to Ministers and even higher authorities when they felt like it.

    This is the way in which the totalitarian State moves. It abolishes the representative body and substitutes a body nominated by the Minister. It is, in fact, the definition of the totalitarian State. If one wants to go further, we have the speech of the hon. Member for Epping (Mrs. Manning) who referred to "these frivolous and vexatious complaints." It is the power and privilege of responsible local authorities, and indeed of this House, that small as well as great complaints can be brought before them, and that if a person is in difficulty he can complain to an executive body which will do something to remedy the complaint.

    The Minister said that the complaints could not be registered in a book. That was the point.

    The Minister said that he would consider the suggestion that minutes of the bodies should be kept and should be available for the public. He said that after two days of Second Reading and one and a half days of Report stage. The battle over the suggestion that the Press should have access to proceedings of public bodies is a battle that is being fought out again and again, and the Minister has indicated how far we have gone along this path.

    6.45 p.m.

    The speech of the Parliamentary Secretary, as always, was persuasive, informative and courteous and he did his best to recommend these proposals to the House and to indicate why the House should vote against the proposals of my hon. Friends. But he cannot say more than he said in the speech upstairs in Committee, to the effect that these are experiments and that it is doubtful whether these experiments will succeed. When I hear the Minister cataloguing what he will find it necessary to do before he allows anybody to sit even on such a consultative council, I have grave doubts about the value of such a body, and I doubt also whether the procedure laid down in this Clause and in the Amendment is such as to lead to a rapid or speedy redress of grievances. There is only one way in which to ensure that redress of grievances. That is by withholding. supply. That is an old point in this House. The local authorities have that power, and it is being removed. The supply is no longer in the hands of these bodies which he is setting up. Lacking those powers, they lack effective authority and they will do nothing to bring about what the Minister desires. We have put down an Amendment which, admittedly, will not entirely remedy this matter but will go a certain distance towards doing so.

    I am very disappointed at the attitude of the Parliamentary Secretary. He does not seem to realise that these consultative councils are the only safeguards now left to the public after many safeguards have been taken away. I was also profoundly shocked when the hon. Member for Epping (Mrs. Manning) said that every day there are vexatious and frivolous complaints made by the ordinary householder and his wife. I regard that sort of observation as an insult to the public. No doubt, hon. Members opposite regard any sort of complaint that is made against the working of their Government as being frivolous and vexatious. I was also astounded when the Parliamentary Secretary rebuked my hon. Friend the senior Burgess for Cambridge University (Mr. Pickthorn) because he said my hon. Friend had misrepresented the Minister in regard to his definition of a Tory housewife. The Parliamentary Secretary said that by a Tory housewife who is incapable of becoming a member of a consultative council, the Minister meant someone who is not really a housewife at all. It was a rotten definition. The right hon. Gentleman has taken the utmost care not to strike out from acting those very people who are the most vocal and who are not housewives; I refer to those so-called housewives who denounce the Housewives League in this House, and who take all their meals in the House of Commons.

    The right hon. and gallant Member for the Scottish Universities (Lieut.-Colonel Elliot) spoke of the Government getting into difficulties as a result of the attitude they are now taking. I should say the difficulties into which the Government have got cannot compare with the difficulties in which the right hon. and gallant Gentleman found himself when he had to support the terms of the Amendment. This Amendment deals with the question of a register, and not the question of Tory housewives or any other sort of housewives. It deals with a register in which all sorts of complaints have to be kept. The right hon. and gallant Gentleman went on to tell us that during the time that electricity was managed by the municipalities—and he said that 66 per cent. of it was managed by municipalities—some method of this sort has been followed. I deny that statement. It is nothing but a farrago of nonsense to say that what is proposed here in this Amendment has been the practice of the

    Division No. 277.]

    AYES.

    [6.53 p.m

    Assheton, Rt. Hon. RBirch, NigelBuchan-Hepburn, P. G. T.
    Astor, Hon. M.Boles, Lt.-Col. D. C. (Wells)Butcher, H. W.
    Barlow, Sir J.Bower, N.Channon, H.
    Beechman, N. A.Boyd-Carpenler, J. A.Clarke, Col. R. S,
    Bennett, Sir P.Braithwaite Lt.-Comdr. J. G.Clifton-Brown, Lt.-Col. G.

    municipalities of this country. Indeed, the municipalities know perfectly well that the great mass of complaints that come before them can be dealt with sensibly by their officials, and that there is no need to keep books. There is no need to fill forms. The filling of forms, which for so long has been a matter of complaint against us by hon. Gentlemen opposite, is now asked for by them in this Amendment, in the filling up of the registers they want kept. I submit that no case has been made at all, and I hope that the proposals will not be accepted.

    I want to say one word on this Amendment. It is possible to so overload an organisation with details as to destroy the functioning of the body. The hon. Member the senior Burgess for Cambridge University (Mr. Pickthorn), who moved the Amendment, said that Tories might be opposed to nationalisation, but they wanted to see these bodies functioning efficiently. I do not believe that. In two years' time, when we are preparing for a General Election, the Tories will not come here to say that nationalisation has been a success.

    We are not discussing nationalisation. We are discussing whether or not a register should be kept.

    I was dealing with the argument the hon. Member the senior Burgess for Cambridge University put forward on this particular Amendment. In the course of it he made a very strong attack on the Minister for something the Minister was alleged to have said about the people who had been on the boards or the advisory councils, and other hon. Members have followed him, and these sneers are attacks on the Minister. I would say here just this—that I would as soon nominate a Tory to be a member of one of these councils as a Tory would nominate me for a tribunal dealing with compensation for landlords.

    Question put, "That those words be there inserted in the Bill."

    The House divided: Ayes, 101; Noes, 284.

    Cooper-Key, E. M.Kerr, Sir J. GrahamO'Neill, Rt. Hon. Sir H.
    Corbett, Lieut.-Col. U. (Ludlow)Lambert, Hon. G.Osborne, C.
    Crosthwaite-Eyre, Col. O. ELancaster, Col. C. GPete, Brig. C. H. M.
    Crowder, Capt. John E.Langford-Holt, J. Pickthorn, K
    Cuthbert, W. N.Law, Rt. Hon. R. K.Ponsonby, Col. C E
    Darling, Sir W. YLennox-Boyd, A. T.Prior-Palmer, Brig 0.
    Drayson, G. BLinstead, H. N.Raikes, H. V.
    Drewe, CLow, Brig A. R WRamsay, Maj. S.
    Duthie, W. S.Lucas, Major Sir J.Rayner, Brig. R.
    Elliot, Rt. Hon. Walter.Lucas-Tooth, Sir H.Roberts, H. (Handsworth)
    Foster, J. G. (Northwich)MacAndrew, Col. Sir CRobinson, Wing-Comdr. Roland
    Fraser, H. C. P. (Stone)McCallum, Maj. D.Savory, Prof. D. L.
    Fraser, Sir I (Lonsdale)Macdonald, Sir P. (I. of Wight)Scott, Lord W
    Galbraith, Cmdr. T. D.Mackeson, Brig. H R.Smiles, Lt.-Col. Sir W
    Gammans, L. D.McKie, J. H (Galloway)Snadden, W. M.
    Grant, LadyMaclay, Hon. J. SSpence, H. R
    Gridley, Sir AMacLeod, J.Stanley, Rt Hon O
    Grimston, R. V.Macmillan, Rt. Hon. Harold (Bromley)Sutcliffe, H.
    Hannon, Sir P. (Moseley)Macpherson, N. (Dumfries)Thornton-Kemsley, C. N
    Harvey, Air-Cmdre. A. VMaitland, Comdr. J. W.Thorp, Lt.-Col. R. A F
    Haughton, S. G.Manningham-Buller, R. ETouche, G. C.
    Headlam, Lieut.-Col. Rt. Hon. Sir CMarshall, D (Bodmin)Vane, W. M. F.
    Henderson, John (Cathcart)Marshall, S. H. (Sutton)Walker-Smith, D
    Hollis, M. C.Medlicott, F.Ward, Hon. G. R
    Hudson, Rt. Hon. R. S. (Southport)Mellor, Sir J.Wheatley, Col. M. J.
    Hulbert, Wing-Cdr. N. JMorris-Jones, Sir H.Willoughby de Eresby Lord
    Hutchison, Lt.-Cm. Clark (E'b'rgh W.)Morrison, Maj. J. G. (Salisbury)
    Hutchison, Col. J. R. (Glasgow, C.)Morrison, Rt. Hon. W S. (Cirencester)TELLERS FOR THE AYES
    Jarvis, Sir J.Navrn-Spenoe, Sir BMajor Conant and
    Jeffreys, General Sir G.Noble, Comdr A. H. PMr. Studholme.

    NOES

    Adams, Richard (Balham)Davies, Ernest (Enfield)Hastings, Dr. Somerville
    Allen, A. C (Bosworth)Davies, Harold (Leek)Herbison, Miss M
    Alpass, J. H.Davies, Hayden (St. Pancras, S.W.)Hicks, G.
    Anderson, A (Motherwell)Deer, G.Hobson, C. R.
    Anderson, F. (Whitehaven)Delargy, H. J.Holman, P.
    Attewell, H. C.Diamond, J.Holmes, H. E. (Hemsworth)
    Austin, H. LewisDodds, N. NHouse, G.
    Awbery, S. S.Driberg, T. E. N.Hoy, J.
    Ayles, W H.Dumpleton, C. W.Hudson, J. H. (Ealing, W.)
    Ayrton Gould, Mrs. BDurbin, E. F. M.Hughes, Hector (Aberdeen, N.)
    Bacon, Miss A.Ede, Rt. Hon. J C.Hughes, H. D. (W'lverh'pton, W.)
    Baird, J.Edwards, Rt. Hon. Sir C. (Bedwellty)Hutchinson, H. L. (Rusholme)
    Barstow, P. G.Edwards, N. (Caerphilly)Hynd, J. B. (Attercliffe)
    Barton, C.Edwards, W. J. (Whitechapel)Irving, W. J
    Beattie, J. (Belfast, W.)Evans, E. (Lowestoft)Janner, B.
    Bechervaise, A. EEvans, John (Ogmore)Jay, D. P. T.
    Benson, G.Evans, S. N. (Wednesbury)Jeger, G. (Winchester)
    Berry, H.Ewart, R.Jeger, Dr S. W (St. Pancras, S.E.)
    Beswick, F.Fairhurst, F.John, W.
    Bevan, Rt, Hon. A. (Ebbw Vale)Farthing, W. J.Jones, D. T. (Hartlepools)
    Binns, J.Fernyhough, E.Jones, P. Asterley (Hitchin)
    Blenkinsop, A.Field, Captain W. J.Kendall, W. D
    Blyton, W. R.Fletcher, E. G M. (Islington, E.)Kenyon, C.
    Bottomley, A. GFollick, MKey, C. W.
    Bowdon, Flg.-Offr. H. W.Foot, M. M.King, E. M
    Bowles, F. G. (Nuneaton)Forman, J. C.Kinley, J.
    Braddock, Mrs. E. M. (L'pt, Exch'ge)Fraser, T. (Hamilton,)Kirby, B. V
    Braddock, T (Mitcham)Freeman, Peter (Newport)Lang, G.
    Brooks, T. J. (Rothwell)Gaitskell, H. T. N.Layers, S.
    Brown, T J. (Ince)GaHacher, W.Lawson, Rt. Hon. J. J.
    Brown, W. J. (Rugby)Ganley, Mrs. C S.Lee, F. (Hulme)
    Bruce, Major D. W. T.George, Lady M Lloyd (Anglesey)Lee, Miss J (Cannock)
    Buchanan, G.Gibbins, J.Leonard, W
    Burke, W. AGibson, C. W.Leslie, J. R.
    Byers, FrankCilzean, A.Levy, B. W
    Callaghan, JamesGlanville, J. E. (Consett)Lewis, A W. J. (Upton)
    Carmichael, JamesGoodrich, H. E.Lewis, J (Bolton)
    Chamberlain, R. AGordon-Walker, P. CLindgren, G, S.
    Champion, A. J.Greenwood, A W J (Heywood)Lipson, D. L,
    Chafer, D.Grey, C, F.Lipton, Lt.-Col. M.
    Chetwynd, G. RGrierson, E.Logan, D. G.
    Cluse, W. S.Griffiths, D. (Rother Valley)Longden, F
    Cocks, F. S.Griffiths, Rt. Hon. J. (Llanelly)Lyne, A. W
    Collindridge, FGriffiths, W. D. (Moss Side)McAdam, W.
    Collins, V. JGunter, R. J.McEnlee, V. La.J
    Colman, Miss G. MGuy, W. H.McGhee, H. G.
    Comyns, Dr. L.Haire, John E (Wycombe)Mack, J. D.
    Corlett, Dr. J.Hale, LeslieMcKay, J. (Wallsend)
    Corvedale, ViscountHall, W. G.McKinlay, A. S.
    Cove, W. G.Hamilton, Lieut.-Col RMcLeavy, F.
    Daggar, G.Hardman, D. RMainwaring, W H
    Daines, PHardy, E. A,Mallalieu, J. P. W.

    Mann, Mrs J.Ranger, JThorneycroft (Clayton)
    Manning, C. (Camberwell, N.)Rankin, J.Thurtle, Ernest
    Manning, Mrs L. (Epping)Rees-Williams, D RTiffany, S.
    Mathers, G.Reeves, J.Timmons, J.
    Medland, H. MRobens, A.Titterington, M. P
    Mellish, R. J.Roberts, Emrys (Merioneth)Tolley, L.
    Messer, F.Robertson, J. J. (Berwick)Turner-Samuels. M
    Middleton, Mrs. L.Rogers, G. H. R.Ungoed-Thomas, L.
    Mikardo, IanRoss, William (Kilmarnock)Usborne, Henry
    Mitchison, G. RRoyle, CVernon, Maj W. F
    Moody, A. S.Sargood, RViant, S. P.
    Morgan, Dr. H B.Scollan, TWadsworth, G
    Morley, R.Scott-Elliot, WWalkden, E.
    Morris, Lt.-Col. H. (Sheffield, C.)Segal, Dr. S.Walker, G H
    Morris, P. (Swansea, W.)Shackleton, E. A. AWallace, G. D. (Chislehurst)
    Morris, Hopkin (Carmarthen)Sharp, GranvilleWallace, H W. (Waithamstow, E.)
    Morrison, Rt. Hon. H. (L'wish'm, E.)Shawcross, C N. (Widnes)Warbey, W. N.
    Moyle, A.Shinwell, Rt. Hon. E.Watkins, T E
    Nally, W.Shurmer, P.Watson, W. M.
    Naylor. T E.Silverman, J. (Erdington)Webb, M. (Bradford, C.)
    Neal H. (Claycross)Simmons, C. J.Wells, P. L. (Faversham)
    Nichol, Mrs. M. E. (Bradford, N.)Skeffington, A. M.West, D. G.
    Nicholls, H. R. (Stratford)Skeffington-Lodge, T CWestwood, Rt. Hon J
    Noel-Baker, Rt. Hon P. J. (Derby)Skinnard, F. W.White, H (Derbyshire, N.E.)
    Noel-Buxton, LadySmith, C. (Colchestor)Whiteley, Rt. Hon. w
    Oldfield, W. H.Smith, H N. (Nottingham, S)Wigg, Col. G. E.
    Oliver, G. HSmith, S H. (Hull S.W)Wilkes, L.
    Paling, Will T. (Dewsbury)Solley, L. J.Wilkins, W. A.
    Palmer, A. M. F.Scskice, Maj. Sir FWilley, O. G. (Cleveland)
    Pargiter, G. ASparks, J. A.Williams, J. (Kelvingrove)
    Parkin, B. TStamford, WWilliams, W. R. (Heston)
    Paton, J. (Norwich)Steele, T.Williamson, T
    Pearson, AStephen, CWillis, E.
    Peart, Thomas F.Stewart, Michael (Fultham E.)Wills, Mrs. E. A.
    Piratin, P.Stubbs, A. E.Woodburn, A
    Poole, Major Cecil (Lichfield)Swingler, S.Woods, G. S
    Popplewell, E,Sylvester, G. 0Wyatt, W.
    Porter, G. (Leeds)Taylor, H B (Mansfield)Yates, V. F.
    Price, M. PhilipsTaylor, R. J. (Morpeth)Young, Sir R. (Newton)
    Pritt, D. N.Taylor, Dr. S. (Barnet)Zilliacus, K
    Proctor, W. TThomas, D. E. (Aberdare)
    Pryde, D. J.Thomas, I. O (Wrekin)TELLERS FOR THE NOES:
    Pursey, Cmdr. HThomas, George (Cardiff)Mr. Joseph Henderson and
    Randall, H EThomson, Rt. Hon. G R. (Ed'b'gh, E.)Mr. Hannan.

    7.0 p.m.

    I beg to move, in page II, line 30, after "Board," to insert "and with the Council."

    This is a small but, I think, useful Amendment. Its object is to require that the Central Authority should consult with the council and the board before making a decision. At the moment the Central Authority is required to consult only with the board, and is not required to consult with the consultative council which made the original representation. The more advice we have on both sides, the better.

    Amendment agreed to.

    I beg to move, in page II, line 35, at the end, to insert:

    "(8) A Consultative Council may, after consultation with the Central Authority, make representations to the Minister on any matters arising out of representations made by them to the Central Authority under Subsection (6) of this Section, and if it appears to the Minister, after consultation with the Area Board and with the Council, that a defect is disclosed in the Area Board's general plans and arrangements for the exercise and performance of their functions under this Act, he may notify the defect to the Central Authority, and thereupon the Central Authority shall give to the Area Board such directions as they think necessary for remedying the defect, and the Area Board shall give effect to any such directions."

    We have already discussed this Amendment, and I thought the understanding was that I should move it formally at this stage.

    I thought-there was an Amendment which the hon. Member wanted to move, about which he asked me during the previous discussion. I thought the hon. Member wanted to insert the words "and with the Council" after the words "Area Board."

    I am sorry there has been this misunderstanding. The hon. Member for Wavertree (Mr. Raikes) moved an Amendment in page II, line 30, after "Board," to insert "and with the Council," which the Government accepted just now, and which was approved by the House. I thought we were now taking the Amendment in page II, line 35, at the end, to insert the new Subsection (8). I merely want to move that formally. I do not wish to make any Amendment to it.

    It is perhaps my mistake. I thought that, having accepted the other Amendment to insert the words "and with the Council," it was desired that those words should be inserted in line 4 of the new Subsection (8), after "Area Board."

    I had not understood that. Perhaps we could consider that and, if necessary, have an Amendment made in another place.

    Amendment agreed to.

    I beg to move, in page 12, line 12, after "individual," to insert:

    "such allowances in respect of any loss of remunerative time and."
    This is a minor Amendment which relates to the provision of the payment of expenses on account of loss of time incurred.

    I take it that steps will be taken to ensure that in these cases where travelling allowances and allowances for loss of remunerative time are claimed the person who claims them gives reasonable proof that, in fact, he did lose the time, and that he was not paid for that loss by some other body. Otherwise, he would be paid by both. The right hon. Gentleman knows that there has been a great tendency in certain areas for that to happen. One would hope that the Minister would issue such directions as will ensure that, in fact, persons claim only once, and put in vouchers to prove that they spent the money or lost the remunerative time, as the case may be.

    I can certainly give the right hon. Gentleman that assurance. We will take appropriate measures to prevent any malpractice.

    Amendment agreed to.

    I beg to move, in page 12, line 41, after "section," to insert, "other than Subsection (8)."

    This Amendment is consequential upon the inclusion of the new Subsection as a result of our previous discussion. Provisions comparable with the new Subsection (8) already accepted by the House are already included in the Bill in relation to the North of Scotland Board. This Amendment accordingly provides that the new Subsection shall not apply to the Board.

    I should like the Minister to explain to us where these provisions are included in the Bill. It is very desirable that we should know.

    In the case of the North of Scotland district, Subsections (6) and (7) of Clause 7, as adapted by Subsection (13) already provide that the consultative council for the district may make representations to the Secretary of State with regard to the North of Scotland Board's general plans and arrangements; and the Secretary of State may give directions to the Board for remedying any defect disclosed.

    Perhaps I might speak again, with the leave of the House. I do not think the Secretary of State's explanation quite clears our minds on this side of the House. There seems to be some very complicated system of internal reference within the Clause. Perhaps it might be made somewhat clearer in another place. I take it from the Secretary of State that the position is as stated, but I am sure he will not deny that it is obscure. I should very much like to know whether it would not be possible for us to make a somewhat more tidy job, to use a colloquial phrase, before passing from it.

    We consider that this is a tidy job. I have tried to make it clear, and I thought I had met the point raised by the right hon. and gallant Gentleman. I have given him the Subsections, and so on, which really make the provisions so far as the North of Scotland Hydro-Electric Board is concerned.

    It is very difficult for a layman to follow. The Amendment, in page 11, line 35, inserts Subsection (8), which is a new provision made as a result of our representations in Committee. Is the Secretary of State for Scotland suggesting that this provision, which appears as a new provision in the English Bill, was always in the North of Scotland Act?

    In the North of Scotland, as the Bill was originally drafted, the consultative council has the right to go, not to the Central Authority, but to the Secretary of State, because there is no central authority outside the North of Scotland Board; the Board is the central authority and the area board. There is no need, therefore, for provision to be made as far as the North of Scotland is concerned.

    Amendment agreed to.

    Clause 8—(Annual Reports Of Central Authority And Area Boards)

    I beg to move, in page 13, line 18, to leave out "national interest," and to insert, "interests of national security."

    It would appear that this represents no substantial difference of opinion among us. There was some controversy during the Committee stage about the meaning of the words, and I promised to provide words more consistent with the rest of the Clause, and have accordingly done so.

    We were obliged to the Minister for what we thought was a major concession in response to representations we made in Committee, until we heard the last few words of what the Parliamentary Secretary had to say on the question of consultative councils. I am bound to say that I was filled with a certain amount of apprehension when the Parliamentary Secretary suggested that it might be contrary to national security if it were disclosed to the public that the Central Authority had proposals for improving the distribution of electricity in some particular area. It seems to be going pretty far to suggest that, if the Central Authority propose to improve the distribution, or start a new system of distribution in some particular area, it should be regarded as contrary to national security to disclose it to the public. The Parliamentary Secretary to the Ministry of Supply takes exception to what I have said. If there is to be substantial improvement in the distribution of electricity in a scattered area, why on earth should that be regarded as a matter which raises any question of national security?

    I cannot follow the right hon. Gentleman at all. The position is quite clear. This relates to directions issued by the Minister to the Central Authority, and the Minister is empowered to report any directions he has issued to the Central Authority. We are safeguarding the national interest by ensuring, in stating these directions, that we shall have due regard to any matter which seems to affect the national interest.

    7.15 p.m.

    The right hon. Gentleman prefers "national security." I have responded to his request, although, frankly, I do not see much difference. Clearly, there may be some strategic issue which it is not desirable to make public. For example, there might be some reason why the Minister had directed the Central Authority not to site a station in a particular area. It might, in the interests of national security, be desirable to withhold that information. I cannot see how that would interfere with the public, or that it is of any value to the public to have information of that kind. Having regard to the discussion which took place in Committee, and the fact that the right hon. Gentleman was concerned only about this change in language, I cannot see why he is now raising an objection.

    I do not think the Minister was present when the Parliamentary Secretary made his statement. I quite admit that there may be grounds why it might be desirable, on grounds of national security, not to disclose that the Minister had given directions on the siting of a generating station at a particular point. I cannot understand the words used by the Parliamentary Secretary. He suggested that the question of an improvement in distribution, or the inauguration of a new system of distribution in a particular area, should be regarded as a matter of national security. I am not questioning the general principle, but asking why on earth the Parliamentary Secretary should have made that suggestion.

    I agree that the Minister has tried to meet the criticisms which were made in Committee, but the words" national security" do not appear to get us out of the difficulty. The person who determines the question of national security is the Minister of Fuel and Power, and I cannot understand what he has to do with it. I see no reason why it should be there at all. These words are nearly as bad as the original words.

    I must take exception to what the hon. and learned Gentleman the Member for Carmarthen (Mr. Hopkin Morris) has said. This question of what is the national interest is not determined by the Minister of Fuel and Power, but by the Government.

    We should like the Minister to answer the point made by my right hon. Friend the Member for Southport (Mr. R. S. Hudson). The Parliamentary Secretary indicated a certain line of conduct which does not really fall within the limits of national security. In Committee, we were trying to narrow down the words "in the national interest" in relation to the suppression of information. We thought that these words met our point, because they suppress information which it is contrary to national security to disclose. The Parliamentary Secretary seemed to take the matter beyond the ordinary definition of security, by suggesting an unnecessary suppression of information. The only people who know what is being done are the General Staffs. The German General Staff were very well informed before the war, and they soon had it all mapped out whether an electricity supply was in one area or in another. The General Staffs know exactly what is going on, and they would hold meetings to decide exactly what strategic factors were foreshadowed. We should like the Parliamentary Secretary to say that, if he did not regard these matters as security measures in the wider sense, he intended to interpret them in the narrower sense. I think then that we on this side could be satisfied.

    Amendment agreed to.

    I beg to move, in page 13, line 23, at the end, to insert:

    "(4) A Consultative Council may, as respects any financial year of the Area Board for their area or, if their area is the North of Scotland District, of the North of Scotland Board, make to the Board a report on the exercise and performance by the Council of their functions during that year, and any such report shall be made to the Board as soon as possible after the end of the said financial year, and the Board shall include that report in the report made by them under this Section or, as the case may be, under Section twenty-three of the Act of 1943."
    This Amendment relates to the question of consultative councils making annual reports to either the area board, the Central Authority or the Minister, as the case may be. In Committee, the Opposition moved an Amendment to require the consultative council to present reports direct to the Minister. I stated that if a report was to be presented before its publication it would be better for it to be embodied in the area board's report, in the first instance, before going to the Minister. I think that this is the appropriate way of dealing with this matter.

    This goes a considerable way towards meeting the request that we made on the Committee stage. I would have regarded it as more or less satisfactory, but for the argument that developed on Clause 7. The Clause, as it stands, gives power to the Minister to issue directions for the report to be submitted and then published. We should like to know whether we can obtain the assurance from the Minister that he will take steps to see that a consultative council's report is of such a nature or in such a form as to give a true picture not merely of what it has done but of what it has failed to do.

    We were told, in effect, during the discussions on the consultative councils that, if the desires of the Parliamentary Secretary are to be met, little or no publicity is to be given to their proceedings, particularly in any case where they have failed to give satisfaction. If effect is given to that view, one of the chief objects of the Opposition in urging the Minister to put forward this Amendment will be defeated. The object of these reports is that the public shall know what has happened to representations made by the consumers. I want once more to emphasise that the statutory protection of the consumer is being abolished. Judging from what the Parliamentary Secretary said on Clause 7, it is clear that what he intends is that the consultative councils should pursue their work in a condition of darkness.

    Amendment agreed to.

    I beg to move, in page 13, line 27, at the end, to insert:

    "and shall at the same time lay before each House of Parliament a report with respect to the exercise of his functions during that year under this Act and the Electricity (Supply) Acts, 1882 to 1936, except as regards matters which in his opinion it is against the interests of national security to disclose."
    Under Section 30 of the Electric Lighting Act, 1882, the Minister was required to make an annual report to Parliament, but as these were sometimes very voluminous, it was thought desirable to make it possible to summarise the general activities and present them in a more abridged form. Provision is made for the presentation of a report in respect of the exercise of a Minister's functions in relation to these Acts.

    Amendment agreed to.

    Clause 9—(Compulsory Purchase Of Land)

    I beg to move, in page 13, line 31, at the end to insert: "(except section two thereof)."

    This and the following two Amendments are not entirely drafung. On the Committee stage it was urged by hon. Members opposite that in the application of the Acquisition of Land (Authorisation (Procedure) Act, 1946, to the acquisition of land by electricity boards under this Bill the provision in the 1946 Act for speedy acquisition of land should be omitted. Section 2 provides for the speedy acquisition of land, and hon. Members opposite proposed that should be omitted in the application of that Act to this Bill. This and the following two Amendments deal with that point.

    Amendment agreed to.

    Consequential Amendments made.

    I beg to move in page 14, line 3, at the end, to insert:

    "(3) Section fourteen of the Schedule to the Electric Lighting (Clauses) Act, 1899 (as incorporated with this Act), so far as the said section relates to the Postmaster General, shall apply to the placing of an electric line in pursuance of any right purchased under this section in like manner as it applies, to the execution of works involving the placing of lines in, under, along, or across any street or public bridge."
    This Amendment applies the provisions of Section 14 of the Schedule to the Electric Lighting (Clauses) Act, 1899, to Acts in which, under the provisions of Clause 9 of this Bill, the board compulsorily acquires the right to place an electric line over land. The provisions of Section 14 are to the effect that if an undertaker wishes to exercise these powers he has to give notice to the Postmaster-General. In the event of there being a difference between the undertaker and the Postmaster-General, Section 14 provides for certain machinery for the resolution of differences, and provides also for the payment of compensation in the event of damage being caused to the Postmaster-General's property. This Amendment seeks to say that if the Electricity Board, acting under the terms of Clause 9, compulsorily acquires the right to lay wires across land, it must, in the same way, give notice to the Postmaster-General in order that the question whether the proposed laying of the line will damage the Postmaster-General's property can be determined in the way in which it is determined under Section 14 of the 1899 Act.

    Amendment agreed to.

    Clause 10 (Power Of Electricity Boards To Promote And Oppose Bills)

    Amendments made: In page 14, line 13, after the first "and," insert "any Electricity Board."

    In line 15, leave out "the Authority or," and insert "an Electricity."— [ [Mr. Shinwell.]

    Clause 13—(Vesting Of Assets Of Electricity Undertakings)

    7.30 p.m.

    I beg to move, in page 16, line 23, to leave out "and," and to insert:

    "(ii) all agreements between any authorised undertakers and any railway undertakers for the supply of electricity to the railway undertakers for the purposes of haulage or traction, and all transmission lines used wholly or mainly for the purpose of giving a supply to any railway undertakers for the purposes of haulage or traction; and"
    The proviso to Subsection (4) of this Clause specifies certain assets and categories of assets which shall vest in the Central Authority/not an area board. They include such things as generating stations. We propose to add to those particular types of assets agreements for the supply of electricity to railway undertakers. We provide in Clause 43 that the Central Authority shall be responsible for the supply of current to the railways, and it is appropriate that the Central Authority should take over agreements to supply the railways with electricity.

    Amendment agreed to.

    I beg to move, in page 17, line 33, at the end, to insert:

    "(d) for any reference (however worded and whether express or implied) to the directors or any director of the body there were substituted, as respects anything falling to be done on or after the vesting date, a reference to such person as the appropriate Board may direct;
    (e) for any reference (however worded and whether express or implied) to any officer of the body there were substituted, as respects anything falling to be done on or after the vesting date, a reference to such person as the appropriate Board may appoint or, in default of appointment, to the officer of the Board who corresponds as nearly as may be to the first mentioned officer."
    Subsection (7) of this Clause deals with the adaptation of agreements which are transferred from electricity undertakings to electricity boards. The Subsection did not contain the necessary machinery for transferring the word, "director," to the appropriate officer in the board, and this Amendment seeks to remedy that omission.

    Amendment agreed to.

    I beg to move, in page 17, line 37, to leave out from "any," to "and" in line 38. and to insert:

    services under the appropriate Board to be selected by that Board, which are reasonably equivalent services."
    During the Committee stage Members opposite took exception to the word, "comparable," and suggested that the word "equivalent," would be clearer. We adopt that suggestion in this Amendment.

    We regard this Amendment as an advance. but it still remains the case that the services can be selected by the board. The Minister has said that the protection of the subject still remains, but there is no doubt that a great monopoly is being set up which will have power to select for itself services which it regards either as reasonably comparable, or, in the words of the Amendment, "reasonably equivalent." This is an example of the dangers to which the ordinary citizen will be exposed working under a system in the creation of which, according to the Government, this Bill is only the forerunner.

    Amendment agreed to.

    Further Amendment made: In page 17, line 39, leave out "two," and insert"four."—[ The Solicitor-General.]

    I beg to move, in page 18, line 6, to leave out Subsection (8), and to insert:

    "(8) Other documents, not being enactments, which refer, whether specifically or generally, to any such body, shall be construed in accordance with the provisions of the last foregoing Subsection, so far as applicable."
    This Amendment is designed to meet a criticism which was advanced by Members opposite in Standing Committee, when the Subsection was objected to on the ground that the drafting was obscure. We have tried to simplify it in this new Subsection.

    Nobody will deny that this Amendment makes a considerable improvement. If anything was necessary to show the advantage of Opposition criticism this Amendment is an example.

    Amendment agreed to.

    I beg to move, in page 19, line 1, to leave out paragraph (c).

    When this Clause originally came before the House the only director who could claim for compensation because of cessation of office, or any other cause, was a managing director. During the Committee stage, two Amendments were accepted by the Government. The first was that directors whose duties were substantially those of an employee could claim, and the other was that any director who had liability in respect of fees earned, or expenses incurred before the vesting date, could claim. It may be argued by the Government that these are concessions for which Members on this side of the House should be grateful, but I would make it clear that both these Amendments were merely playing with a situation which we knew would result in the gravest possible consequences.

    In proposing to leave out this paragraph, we are trying to bring directors into the same category as all other persons employed in electricity companies. By Clause 49, any person whose contract is taken over by a new corporation may receive compensation in accordance with regulations to be issued by the Minister. We are seeking to ensure that directors shall have an equal chance with others working in the industry of having their claims considered. We are not seeking in any way to make directors a privileged class. The Minister has admitted on many occasions that directors are a class of which the nation may be proud, and we are asking that their services to industry shall be treated in the same way as those of other people who have played their part in this vital service to the community.

    I am afraid that the inclusion of this paragraph in the Bill is merely due to political prejudice on the part of Members opposite. That is the only reason for its retention, so far as I can see. I' have tried to study the background which governs the Government's attitude towards directors, and I need only remind the House of what the Minister said last night. Talking about directors, he said:
    "Have they in mind the chairman of the board of an existing supply company who has attacked this Bill, who has declared that its provisions are dangerous and fatal to the future of electricity supply in the country? If they have in mind such a person, I say quite frankly that, whatever hon. Members may think about it, if I have to appoint electricity boards it would be quite improper to appoint to such boards a person who was definitely opposed to the nationalisation of the industry."—[OFFICIAL REPORT, 23rd June, 1947; Vol. 439, c. no.]
    It may well be that people are opposed to the nationalisation of the industry, but the Minister must appreciate that such people may be very good servants to the industry, in the sense that, although they may think nationalisation to be against the best interests of the industry; they are prepared to serve the new authority, now the decision has been taken, as they have done in the past. A statement like that can only lead Members of this House to have the initial impression that the Minister is against anybody who happens to have the word "director" attached to his name.

    I think that that impression is more than substantiated when one considers what the Minister said in Committee. I admit that the right hon. Gentleman arrived rather late on the occasion in question and did not have the benefit of having heard all the arguments and, particularly, the very reasonable arguments put forward by his Parliamentary Secretary. I should like to recall to the House just what the Minister said when he was refusing this Amendment upstairs:
    "Of course, it is not a satisfactory answer to the hon. Gentleman"—
    meaning my hon. Friend the Member for Northwich (Mr. J. Foster)—
    "He says the reason we are doing this is because some directors have stood up to me. They may have appeared to have been standing up to me but in effect what they are doing is to stand up for themselves."
    I do ask the Minister whether perhaps tonight he would like to reflect on that statement, and whether he really feels it to be true. Does he really believe that the directors of an industry which he has praised many times in this House deserve what he has said about them? If I may, I should like to continue to quote the Minister's remarks on that occasion. He went on to say:
    "They are quite satisfied with the present dispensation; of course they are. They have been doing very well out of it, and naturally they resent this proposed new dispensation."
    Can the Minister produce any evidence to substantiate that charge? Can he really say that any director in the electrical industry, although he may "oppose nationalisation, is determined to wreck this proposal in order to satisfy his own ends? I doubt it very much, but if he can the sooner he makes that evidence available to this House the better. He went on to say:
    "Let us see what these directors are. There are many discarded politicians who have become directors of all sorts of undertakings."
    To which my hon. Friend, the Member for Kingston-upon-Thames (Mr. Boyd-Carpenter) very rightly interjected, "Ben Smith," an interjection which the Minister left alone, going on to say:
    "There are hon. Members on the other side who are guinea-pig directors of companies. I do not know whether they do a full time job of work, but if they do, let them get up and say so; let them tell us what they do."—[OFFICIAL REPORT, Standing Committee E, 27th March, 1947; c.467-8.]
    I have quoted those extracts from the Minister's remarks because I think that they show beyond any reasonable doubt that the Minister is not considering directors as a particular class who have helped in the industry which he himself has said repeatedly in this House has done well by the country, but is allowing his own prejudice against directors as a class to override his judgment. If I may say so this Amendment, if it were carried, would reflect his calmer thoughts rather than his political statements either in the Committee or on the Floor of the House.

    I should like to ask the Minister to consider for a moment the terms of Clause 49. Under that Clause any agreement which is taken over by the board is subject to such regulations as the Minister may make concerning the terms of compensation that may be awarded to anyone whose services are dispensed with. Can he inform the House why directors should not be included under this Clause? The Clause is permissive, and he may make any directions he likes. If he really and sincerely believes, as he appears to from the extracts I have quoted, that there are guinea pig directors, he is perfectly able under Clause 49 to make whatever restrictive conditions he likes to make sure that such directors shall not obtain any benefits. But if, as we say on this side of the House, these directors who are engaged in the industry at the moment are worthy of compensation, then if their services are dispensed with surely in the most elementary terms of justice they should be included in Clause 49.

    I would remind the hon. and gallant Gentleman that there are Amendments on the Order Paper to Clause 49. We cannot discuss them on Clause 14 since one cannot anticipate a discussion. Otherwise, quite frankly, I shall be obliged not to call the later Amendments.

    7 45 P.m.

    I apologise if I have trespassed, Mr. Speaker, but no doubt you are aware that Clause 49 in its general implications was used very widely upstairs during the previous stage of this Bill, and I hope that I was in Order in referring to it in the same general way without prejudice to any subsequent Amendments.

    The hon. and gallant Gentleman is on a very delicate line because we cannot discuss Amendments to a Clause which we have not yet reached. There are Amendments down to Clause 49 and I hope that we shall have an adequate discussion on them.

    I wished to introduce Clause 49 only in its most general terms and merely to say that I should like directors to be included in its provisions. I thought that that was permissible, but if I have trespassed on later Amendments, Mr. Speaker, I apologise.

    I should like to ask the Minister just whom he intends to penalise under this provision. He has talked a great deal about guinea-pig directors, and as far as I can understand what he said in Committee and elsewhere his objection to the removal of this Clause is that in his opinion no director of an electricity company has ever done anything which deserved any credit from the country as a whole. I would ask him whether he is aware of the large number of directors, who—although they are not full-time directors and therefore do not come under this Clause—by part-time service through a holding company and through its subsidiaries do in fact qualify, not under the Clause but in practice, for any compensation that the Ministry may like to declare.

    I should like to ask him also if he has considered the question of professional experts. Where a large scheme of hydro-electrical development is going forward it may be necessary for a company to engage a professional expert who understands as far as possible the latest practice in these matters. What would happen to him? He will not be a full-time director; he will certainly not be a director whose terms of employment correspond to those of an employee. He will recieve no compensation, although he may very well have given up the whole of his practice in order to take part in this development of the electrical industry. Why should he be debarred from coming in?

    In particular, I should like to ask the Minister about these people who have been managers or have held some equivalent position in the industry but who, through old age or ill health, are no longer able to hold those positions. They are promoted to be members of the board so that their services may be maintained and so that their knowledge may be kept available to the company. The Minister is upsetting all that. In spite of his natural desire to help his colleagues, I hope he will consider these cases. They are cases of very considerable personal importance, even if he does not think so. For myself I would rest my case on what was said by an hon. Member on the other side—the hon. Member for Reading (Mr.Mikardo)— which was as follows:
    "Surely every member of the Committee will agree that it is right to give compensation to those men at present engaged in the industry, irrespective of what they are called, who are doing a job of work and that it is wrong to give compensation to those who are not doing a job of work, irrespective of what they are called. In this matter the word 'director' should neither confer privileges nor be made the subject of hostile discrimination."— [OFFICIAL REPORT, Standing Committee E. 27th March, 1947; c. 462.]
    That is all we are asking of the Minister tonight, and I believe that the views of the hon. Member for Reading—with whom I often disagree—are on this occasion far more representative of what this House feels than what the Minister has said on previous occasions.

    We are only asking the Government to do what this House has always done through centuries of legislation—to ensure that whenever we interfere with private enterprise, whenever we interfere with the rights of the individual, that individual has the right to compensation and to have his case heard. That is what we ask, and on that I rest my case. I ask the Minister to abandon his prejudices and to allow directors, as any other class of individual, to have their case heard, and if they be worthy of compensation to receive it.

    I beg to second the Amendment.

    I think the relevance of Clause 49 is this. Clause 13 provides that certain contracts shall vest in the new authority, and under Clause 49 compensation is provided for all those contracts which vest in the new authority. Therefore, if the Subsection is left out, the contracts with the directors will vest, and Clause 49 will operate to ensure that directors will receive compensation. That is the position under the Bill. When the matter was considered in Committee, besides the observations of the hon. Member for Reading (Mr. Mikardo), who said that a person who does a full job of work should get compensation, something was said by the Parliamentary Secretary to that effect. He said that if a director worked he should have his contract. The Amendments which the Government accepted in Committee did go a certain way, but they did not go far enough. They did include two cases which would otherwise have caused grave injustice, namely, the case of the director who was performing the services of an employee and the other case to which my hon. Friend has referred, but they still left out the director who performs a full time-job in different companies and who performs a valuable service.

    It is, I would submit cheap politics to gibe at directors and, the moment the word "director" is mentioned, to do as the right hon. Gentleman the Minister does, and pretend that they are only guinea pigs, that they are harming the industry, and will sabotage the new authority when it is brought into being. That is very cheap politics. What is undoubtedly the fact, and it has been admitted on both sides of the House, is that a great number of directors do an honest and decent job, provide the direction of these companies in a responsible manner, and perform a useful service. Now you can have a full-time director in various companies. His whole day may be occupied in directing various parts of the industry, yet he will get no compensation. Why? Because a sort of political Aunt Sally has been set up that directors are no good. I cannot help suspecting that it is because some directors have shown a good deal of courage in opposing the right hon. Gentleman; they have opposed him, and now they have to pay the penalty.

    Hon. Members opposite are very apt to think that any opposition to them is either impertinent, subversive, or a bad example to foreigners. They have not learnt—all Governments are alike in that respect—that people who oppose can do so quite sincerely and, having perhaps lost their position, can then pitch in and try to help the country. But no, they have to be punished for opposing, and directors have been singled out by the right hon. Gentleman as the persons who have led the opposition outside this House to the nationalisation proposals. Therefore, in view of the extensive programme of nationalisation, it is to be seen that what happens to people who oppose is that they are to be punished and not properly compensated.

    In my submission, the right hon. Gentleman should act in accordance with the principle expressed in Committee by the Parliamentary Secretary and the hon. Member for Reading, who said that the person who does a full job should be compensated. Certain persons who do a full job are not being compensated under this Clause. In another argument, if I remember rightly, the Parliamentary Secretary said that there would be no services under the new authority comparable to those of directors. I do not agree with him, but assuming that what he says is partly correct, surely people who are made redundant and who have been doing a full job should be compensated for their services. It is only justice, and the right hon. Gentleman having accepted these two Amendments, I do urge him to complete the picture by saying that he accepts the principle that a man who does a full job of work should be compensated.

    The hon. and gallant Member for the New Forest and Christ-church (Colonel Crosthwaite-Eyre) was good enough to inform me before the Debate began that he intended to quote from some of my speeches in the Committee and outside, and I gathered from what he said that he was about to make a devastating attack. I told him that I did not mind in the least as long as he did not take up too much time, as I was anxious to get the Bill through. However, I make no complaint; I am bound to say that I did not detect anything in the nature of a devastating attack. On the contrary, I thought he was very mild. An attempt has been made by the hon. and gallant Member who moved the Amendment and by the seconder to create prejudices, yet at the same time they asked me to divest myself of prejudices. I have no difficulty at all; I can take an impartial view, strange as it may appear to the other side, for it is one thing the other side cannot do. What is the case they present? In dealing with it I shall ignore all the innuendoes and insinuations which I detected in the speech of the hon. and gallant Member for the New Forest and Christchurch, because they have got nothing to do with the case. What are they asking? They are asking that directors without exception no matter who they are, of private electricity supply companies should be compensated on the transfer of their undertakings to the British Electricity Authority.

    Yes. I thought I had made that clear, and I am grateful to the right hon. Gentleman for allowing me to intervene. All we are asking is that directors, like any other class, should be eligible for compensation as provided by the Clause.

    Directors without exception—directors as a class—should be eligible for compensation. Then we have to discriminate when it comes to whether or not they are to receive compensation? Presumably the hon. and gallant Member has in view the setting up of a tribunal for the purpose—or leaving it to the Minister, although I do not expect they would agree to leave it to the Minister— [HON. MEMBERS:"NO."]—especially after what they have said about the Minister. Let us see exactly what this means. They have quoted my speeches and the speeches of my hon. Friend the Parliamentary Secretary in Committee, but they refrained from quoting their own. I will repair the omission, but I will not take up as much time as the hon. Members did. The hon. and gallant Member who moved the Amendment said in the course of his speech in Committee that one of the charges permitted should be for ex gratia payments to directors or others who had served the companies. I said that if that were done it would be possible to pay substantial sums —mark you, substantial sums—either to directors or to other persons, even if those persons were subsequently transferred to the British Electricity Authority. That is to say, they would get the best of both worlds—they would receive compensation and in addition would be found good jobs in the British Electricity Authority.

    8.0 p.m.

    I made an offer to the hon. Gentlemen. I said that if they would put down an Amendment to the effect that small sums could be paid by way of ex gratia payments to those persons, specifying the sums which they had in mind, I would consider it. I said that if it was only a matter of £100, £200 or £500—if it did not amount to a very large sum globally.—it would not concern me unduly. What had I in mind, when I said that? The hon. Members concerned were not referring to managing directors, who are covered, or to directors who could be regarded as employees of electricity under takings that is to say, to a director who was employed full time, and might be regarded as an officer of the undertaking. Hon. Members opposite were concerned with directors, whom I called guinea-pig directors. Some of them are discarded politicians. Some of them receive only a minimum payment in the form of fees, perhaps £100 or up to £500 a year, or perhaps small fees for attending meetings. I said I was prepared in those circumstances, if a suitable form of words to sponsor this point of view could be provided by the Opposition to consider some arrangement to provide ex gratia payments of that kind. No attempt has been made to find such a form of words. I left the matter to the Opposition. What they now propose is to exclude the whole of the Subsection so as to bring all directors into the purview, in relation to compensation payments. [HON. MEMBERS: "Why not?"]

    Let me deal with the substance of this case. Hon. Gentlemen opposite say that I am prejudiced against directors. The hon. Member for Northwich (Mr. J. Foster), not for the first time but without any evidence, has accused me of being prejudiced against certain directors who, he says, have attacked nationalisation. Who are the directors who have attacked nationalisation? Not the ordinary director who receives a fee or some remuneration for part-time services, but managing directors like Sir Robert Renwick and Mr. William Shearer.

    I am not complaining about the attacks. Those directors are perfectly entitled to attack nationalisation if they dislike it; but those men are not excluded from compensation by the provisions of the Clause. They have contracts with their existing undertakings, and those contacts for personal services must be respected. I have no prejudice against those gentlemen, in spite of the fact that they have attacked, in the most vehement and occasionally untruthful way, the nationalisation proposals. They are to be compensated. It may well be that if they have technical and administrative qualifications they may be employed in the new undertaking. Who can say? It will not be for me to decide that matter but for the British Electricity Authority.

    I repeat what I have said. The average part-time director, whom I have rightly described as the guinea-pig director, is not much concerned in the promotion of electricity supply. For one reason or another he is appointed as a director of an electricity undertaking, but he does not possess high technical qualifications, unlike, for example, the hon. Member for Stockport (Sir A. Gridley), who has a thorough and adequate knowledge of the industry, and who is in quite a different category. So far as those persons are concerned, there is no justification whatever for recognition.

    If there were an amalgamation of electricity undertakings or, as sometimes occurs, absorption of one undertaking by another, does one expect the part-time directors of the absorbed undertaking to be compensated by the major undertaking? [HON. MEMBERS: "Yes."] If they are, on what basis are they compensated? Let hon. Members opposite face that question. Let them produce the form of words which they think is desirable in the circumstances. The fact is that hon. Gentlemen opposite who have moved the Amendment and who have made such a song and dance about it, are not so much concerned about these poor directors, or about the managing directors, the big fellows who are protected under the Bill. They are concerned to create prejudice against the proposals of the Bill. They have done so all along the line. I gave them an opportunity. They cannot say that I was ungenerous. There are my words, in the Committee reports. I said, "Get a form of words. I will consider ex gratia payments.'' They have failed to do so. In my judgment, they are ruled completely out of court.

    Since the famous case of Satan rebuking sin I do not think there has been anything funnier than the Minister of Fuel and Power rebuking other people for trying to create prejudice. Creating prejudice might be called his stock-in-trade. We do not complain about it. It is the most valuable of the assets which we have. Next to the Attorney-General—and nobody can surpass him, of course—the Minister of Fuel and Power is an easy top of the tree among manufacturers of prejudice, and, of course, Conservative votes. [HON MEMBERS: "By-elections."] I certainly have very happy recollections of a by-election with an 18,000 majority and all my opponents forfeiting their deposits. We will leave it at that. We will try to deal with the occasional argument which the Minister interjected into what was a very amusing speech which all of us on this side thoroughly enjoyed.

    The Minister suffers occasionally from amnesia, lack of memory, which is no doubt inevitable because of the great strain which is put upon him. He cannot always remember what he said in Committee. The Minister had been addressing the Committee at some length upon the subject of guinea-pig directors. They differed from the ones which he intended to compensate, the managing directors, the whole-time people. He suggested that the other people did not really come in at all. Of course, he forgets that he addressed the Committee upstairs at some length and that he gave as chief example of the people whom he would not compensate, Mr. George Balfour, who one would say was engaged consistently in electricity companies.

    Of course, he has passed beyond the power of any Minister to injure him any more. If such a director existed today, one admittedly engaged in the active prosecution of electricity undertakings in many quarters of the globe and in particular in many quarters of this island, the Minister would say, "Simply because all his time was not taken up with one company, I will write into the Bill a Clause specifically debarring him even from having his case considered." That is our objection here. The Minister says, with the air of one who sees an abyss yawning before him, "Here are people whose case can be considered. Here is an injustice which we must remedy at all costs. What a terrible matter. Sympathy might overcome me. I will tie my hands in advance. I will make sure against any danger of softening. I will see that no danger of softening comes over me at all." Therefore he says, "In case some person like Mr. George Balfour may come up for consideration, I will specifically write a Clause into the Statute saying that he cannot be considered on any account."

    We are willing to trust the Minister and to let him consider the matter under the Clause which he himself has drawn and which we shall reach later on. It deals with these matters and gives the Minister power to write regulations—a power which the Minister has never shown any unwillingness to assume—but debarring himself specifically from writing any regulations to deal with this small class of person. Then he makes the astonishing suggestion that because we detect a certain amount of prejudice in this we are treating him unfairly.

    For what reason has the Minister written this Clause into the Bill? He has failed to give us any reason. We were prevailing on the Parliamentary Secretary on the 10th day of the Standing Committee to meet us on this point when the Minister came down and answered us with a certain amount of acerbity. At that time I was asking him to meet us in safeguarding the case
    "that has been made on this side of the Committee of a director who, although not engaged whole-time, is engaged on several appointments which, in fact, amount to whole-time employment."
    At that point the Member for Northwich (Mr. J. Foster) interjected
    "Like the Solicitor-General?"
    That was a reference to the fact that on many occasions there had been a disappearance of the Law Officers from that Committee. The Minister was quite plain about it. He said:
    "The answer is, 'No.'"—[OFFICIAL REPORT, Standing Committee E. 1st April. 1947; c. 472.]
    We are again bringing the matter up. We cannot believe that for the sake of dealing with this comparatively small number of persons he will persist in this particular fashion. A part-time director is not a thing we can banish. The Minister is saying, "If you are a part-time director you will be excluded by my Clause from having any kind of consideration of your case." I have myself piloted Acts of one kind or another by which employment was in many cases swept away. Under the Local Government Act for Scotland, for instance, the Scotish education authorities were swept away, and those who had been officers under the education authorities, many of whom were not full-time officers, were eligible for compensation.

    The principle of part-time employment, which is the principle worked in this House, has always been acceptable, for whole-time Members of Parliament were never thought desirable. A person who sits on a board to which he brings a general knowledge of affairs, is as valuable as a person who sits in Parliament with a general knowledge of affairs, and the idea of writing into a Statute that a case could not be considered for a person who is a part-time director is foreign to the general idea on which this House has proceeded for so long. We cannot even yet believe that the Minister has considered the matter seriously, and we would ask him to think again. He is in melliferous mood, which is clearly due to the fact that his long task on this Bill is drawing to its close, and if he has not to concern himself with any other nationalisation Measure he may have time to administer the country instead of having to spend as much time here as he is doing in writing what one might call frivolous and vexatious Clauses into the Statute Book. We say that the number of persons is small and the amount involved trivial, but the number of injustices is more. For all those reasons, let the Minister at least admit the right of these people to go to court when they feel aggrieved.

    8.15 p.m.

    There is some misconception on the other side of the House as to the principles of the appointment of directors. J do not suggest that the Solicitor-General is in any doubt, but I believe there is some doubt on that side. The usual thing is that a director is appointed by the shareholders for a certain period. It depends on the articles of association of the company. It might be for three years. Usually a certain number of directors retire each year, so that the Board retains continuity. It works out that one director is appointed for a period of about three years. During those three years he cannot be got rid of. He has to fulfil his term. He can only be given some inducement to retire. From that has grown up the system of compensation on retirement. As a rule, when a company is taken over by another company or board, either the directors of the smaller company are taken on to the board of the larger or some system of compensation is brought in.

    In this case a very large undertaking is taking over a number of smaller ones. On the vesting date those directors will be thrown out of work. [HON. MEMBERS: "Oh."] There is no other word for it. In many cases they will lose their means of livelihood. We want to know why they are being treated differently from other employees. They are men who give their time and are paid for it. Some of them who are full-time directors give a great deal of their time. They are, therefore, employees of their companies. We cannot see why they should be treated differently. All we ask is that they should receive consideration in the same way as all other employees do. I cannot see where the difference is between these men who are called directors and those who are called managers or servants of the companies in other ways. We all know that in any organisation—it does not matter so much what the man is called; he may be the chairman, the president, the secretary or the treasurer—there is generally one man who really carries on the show, and in companies it is very often a director or a manager.

    I cannot help feeling that we have grounds for being nervous that directors as a class are being prejudiced by this Bill. The hon. and gallant Member for the New Forest (Colonel Crosthwaite-Eyre) just now read certain passages of the proceedings upstairs. Turning up the proceedings for the same day, I found other instances which the Minister will probably remember. He said:
    "It would, I think, be embarrassing if we had in existence, after the vesting date, bodies of directors who have no functions to perform other than to look after the interests of the stockholders …"
    That was the matter being discussed. He went on:
    "…who might, for many reasons, be a bit troublesome. They are troublesome before the vesting date, and while there is no reason to assume that they will be uduly troublesome afterwards, we had better take no risks.…It is no use deceiving ourselves about certain people."—[OFFICIAL REPORT, Standing Committee E, 27th March, 1947; c. 475-6.]
    That does not give the impression that the Minister is out to help directors. I feel that he does not like them, but I do not see that for that reason they should not have a fair deal over this matter in the way other employees do. In addition to the various classes of directors which have been mentioned by my hon. Friends, there is one type which seems to me to be extremely valuable. He is the man who has perhaps started as an engineer or a manager in one of the companies, then becomes a consultant, is put on a board, and from that, owing to his abilities, is put on a number of boards. He spends his time in attending board meetings and travelling between them, reading the necessary minutes, keeping up with the trade journals and various other information, as well as with the various societies, in' order to be up to date with his profession. He gives his whole time to it, not to any one company but to a number of companies and is

    Division No. 278.]

    AYES.

    [8.21 p.m

    Adams, Richard (Balham)Dugdale, J. (W. Bromwich)Hutchinson, H. L. (Rusholme)
    Allen, A. C. (Bosworth)Dumpleton, C. W.Hynd, J. B. (Attercliffe)
    Alpass, J. H.Durbin, E. F. MIrving, W. J.
    Anderson, A. (Motherwell)Ede Rt. Hon. J. C.Jeger, G (Winchester)
    Anderson, F. (Whitehaven)Edwards, N. (Caerphilly)Jeger, Dr. S. W (St. Pancras, S.E.)
    Attewell, H. C.Edwards, W. J. (Whitechapet)John, W.
    Austin, H. LewisEvans, John (Ogmore)Jones, D. T. (Hartlepools)
    Awbery, S. S.Evans, S N. (Wednesbury)Jones, J. H (Bolton)
    Ayles, W. H.Ewart, R.Jones, P. Asterley (Hitchin)
    Ayrton Gould, Mrs. BFairhurst, F.Kendall, W. D
    Bacon, Miss A.Farthing, W, JKenyan, C
    Baird, J.Fornyhough, E.Kinley, J.
    Barstow, P. G.Field Capt. W. J.Kirby, B. V
    Barton, C.Fletcher, E G M. (Islington, E.)Lang, G.
    Beattie, J. (Belfast, W)Follick, M.Lavers, S.
    Bechervaise, A. E.Forman, J. C.Lee, F. (Hulme)
    Benson, G.Fraser, T. (Hamilton;Leonard, W.
    Berry, H.Freeman, Peter (Newport)Leslie, J. R.
    Beswick, F.Gaitskell, H. T. NLevy, B. W.
    Binns, J.Gallacher, W.Lewis, A. W. J. (Upton)
    Blenkinsop, A.Ganley, Mrs. C. SLindgren, G. S
    Blyton, W. R.Gibbins, J.Lipson, D L.
    Bottomley, A. G.Gibson, C. WLipton, Lt.-Col. M
    Bowden, Flg.-Offr. H. WGlizean, A.Logan, D. G
    Bowles, F, G. (Nuneaton)Glanville, J. E. (Consett)Longden, F.
    Braddock, Mrs. E. M. (L'pl. Exch'ge)Goodrich, H. E.Lyne, A. W
    Braddock, T. (Mitcham)Gordon-Walker, P. C.McAdam, W.
    Brooks. T J. (Rothwell)Greenwood, Rt. Hon. A. (Wakefield)McAllister, G.
    Brown, T. J (Ince)Greenwood, A. W. J. (Heywood)McEntee, V. La T.
    Bruce, MaJ. D. W. TGrenfell, D. R.McGhee, H. G
    Buchanan, G.Grey, C. F.Mack, J. D
    Burke, W. AGrierson, E.McKay, J. (Wallsend) '
    Byers, FrankGriffiths, D. (Rother Valley)McKinlay, A. S.
    Callaghan, JamesGriffiths, Rt. Hon. J. (Llanelly)Maclean, N (Govan)
    Carmicnael, JamesGriffiths, W. D. (Moss Side)McLeavy, F.
    Champion, A JGuest, Dr. L. HaderMainwaring, W. H
    Chater, D.Gunter, R. J.Mallalieu, J P W
    Chetwynd, G. RGuy, W. H.Mann, Mrs. J.
    Cluse, W. S.Haire, John E. (Wycombe)Manning, C (Camberwell, N.)
    Cobb, F. A.Hale, LeslieManning, Mrs L (Epptng)
    Cocks, F. S.Hall, W. G.Mathers, G
    Collins, V. J.Hamilton, Lieut.-Col. R.Medland, H M
    Colman, Miss G. M.Hannan, W. (Maryhill)Messer, F.
    Comyns, Dr. LHardman, D R.Middleton, Mrs L
    Corlett, Dr. J.Hardy, E. AMikardo, Ian
    Corvedale, ViscountHastings, Dr. SomervilleMitchison. G. R.
    Cove, W. G.Henderson, A. (Kingswinford)Moody, A. S.
    Crossman, R. H. SHenderson, Joseph (Ardwick)Morgan, Dr. H. B.
    Daggar, G.Herbison, Miss MMorley, R.
    Daines, P.Hicks, G.Morris, Lt.-Col. H. (Sheffield, C.)
    Davies, Edward (Burslem)Hobson, C RMorris, Hopkin (Carmarthen)
    Davies, Ernest (Enfield)Holman, P.Moyle, A.
    Davies, Harold (Leek)Holmes, H. E. (Hemsworth)Nally, W.
    Davies, Hadyn (St. Pancras, S.W.)House, GNaylor, T. E.
    Deer, G.Hoy, J.Neal, H. (Claycross)
    de Freitas, GeoffreyHubbard, T.Nichol, Mrs. M. E. (Bradford, N.)
    Delargy, H. J.Hudson, J. H. (Ealing. W.)Nicholls, H. R. (Stratford)
    Diamond, JHughes, Hector (Aberdeen, N.)Noel-Buxton, Lady
    Driberg, T. E. N.Hughes, H. D. (Wolverhampton, W.)Oldfield, W. H.

    extremely valuable. Is it not fair to suggest that a man of that type should at least have his case heard and not just be wiped out, as this Subsection will wipe him out if it is allowed to stand in the Bill?

    If any directors are unemployed at the vesting date, cannot they do what we did—take their unemployed banners and get out on the march?

    Question put, "That the words proposed to be left out stand part of the Bill."

    The House divided: Ayes, 283; Noes, 92.

    Oliver, G. H.Simmons, C. J.Viant, S. P.
    Paget, R. T.Skeffington, A. MWadsworth, G
    Paling, Rt. Hon. Wilfred (Wentworth)Skinnard, F W.Walkden, E.
    Paling, Will T. (Dewsbury)Smith, C. (Colchester)Walker, G. H
    Palmer, A. M. F.Smith, H. N. (Nottingham, S.)Wallace, G. D. (Chislehurst)
    Parker, J.Smith, S. H. (Hull, S.W.)Wallace, H W. (Walthamstow, E.)
    Parkin, B. T.Snow, Capt. J. WWatktns, T. E
    Paton, J. (Norwich),Sclley, L. J.Watson, W. M
    Pearl, Thomas F.Sorensen, R. W.Webb, M. (Bradford, C.)
    Piratin, PSoskice, Maj. Sir FWeitzman, D.
    Poole, Major Cecil (Lichfield)Sparks, J. A.Wells, P. L. (Faversham)
    Popplewell, EStamford, WWells, W. T. (Walsall)
    Porter, G. (Leeds)Steele, T.West, D. G.
    Price, M. PhilipsStephen, C.White, H. (Derbyshire, N.E.)
    Pritt, D. N.Stewart, Michael (Fulham, E.)Whiteley, Rt. Hon. W.
    Proctor, W. TStubbs, A. E.Wigg, Col. G. E.
    Pryde, D. J.Swingler, S.Wilkes, L.
    Pursey, Cmdr. H.Sylvester, G. 0.Wilkins, W. A.
    Randall, H. E.Taylor, H. B. (Mansfield)Willey, F. T. (Sunderland)
    Ranger, J.Taylor, R. J. (Morpeth)Willey, 0. G. (Cleveland)
    Rees-Williams, D. RTaylor, Dr. S. (Barnet)Williams, J. L. (Kelvingrove)
    Reeves, J.Thomas, D. E. (Aberdare)Williams, Rt. Hon. T. (Don Valley)
    Reid T. (Swindon)Thomas, Ivor (Keighley)Williams, W. R. (Heston)
    Rhodes, H.Thomas, I. 0. (Wrekin)Williamson, T.
    Roberts, Emrys (Merioneth)Thomas, George (Cardiff)Willis, E.
    Robertson, J. J. (Berwick)Thomson, Rt. Hon. G R. (Ed'b'gh,E) Wills, Mrs. E A
    Rogers, G. H. R.Thorneycroft, Harry (Clayton)Woodburn, A.
    Ross, William (Kilmarnock)Thurtle, ErnestWoods, G. S.
    Royle, C.Tiffany, S.Wyatt, W.
    Sargood, RTimmons, J.Yates, V. F.
    Scollan, T.Titterington, M. FYoung, Sir R. (Newton)
    Segal, Dr. S.Tolley, L.Younger, Hon. Kenneth
    Shackleton, E. A. ATomlinson, Rt. Hon. G
    Sharp, GranvilleTurner-Samuels, M.TELLERS FOR THE AYES:
    Shinwell Rt. Hon. E.Ungoed-Thomas, LMr. Pearson. and
    Shurmer, P.Usborne, HenryMr. Collindridge.
    Silverman, J. (Erdington)Vernon, Maj. W. F

    NOES

    Amory, D. HeathcoatGalbraith, Cmdr T. DNutting, Anthony
    Astor, Hon. M.Grimston, R. V.Osborne, C
    Barlow, Sir J.Hannon, Sir P. (Moseley)Peake, Rt. Hon. 0
    Beamish, Maj. T. V. HHare, Hon. J H. (Woodbridge)Peto, Brig. C. H. M.
    Beechman, N. A.Harvey, Air-Cmdre. A. V.Pickthorn, K.
    Bennett, Sir P.Headlam, Lieut.-Col. Rt. Hon. Sir CPonsonby, Col. C. E.
    Birch, NigelHenderson, John (Cathcart)Prior-Palmer, Brig. 0.
    Boles, Lt.-Col. D. C. (WellsHoward, Hon. A.Raikes, H. V.
    Bower, N.Hudson, Rt. Hon. R. S (Southport)Ramsay, Maj. S.
    Boyd-Carpenter, J. A.Hurd, A.Rayner, Brig. R.
    Braithwaite, Lt.-Comdr. J. G.Hutchison, Lt.-Cm. Clark (E'b'rgh W.)Roberts, H. (Handsworth)
    Buchan-Hepburn, P. G THutchison, Col. J. R. (Glasgow, C.)Ropner, Col. L
    Butcher, H. WJarvis, Sir JScott, Lord W.
    Clarke, Col. R. S.Keeling, E. H.Shepherd, W. S 'Bucklow)
    Clifton-Brown, Lt.-Col. G.Lancaster, CoL C. GSmiles, Lt.-Col. Sir W
    Conant, Maj. R. J. E.Langford-Holt, J.Snadden, W M
    Cooper-Key, E. M.Linstead, H. N.Spence, H. R.
    Corbett, Lieut.-Col. U. (Ludlow)Low, Brig. A. R. WStrauss, H. G. (English Universities)
    Crosthwaite-Eyre, Col O. ELucas-Tooth, Sir H.Sutcliffe, H-
    Cathbert, W. N.MacAndrew, Col. Sir C.Taylor, Vice-Adm. E. A. (P'dd't'n, S.)
    Darling, Sir W. Y.McCallum, Maj. D.Thornton-KemsIey, C N
    Davidson, ViscountessMacdonald, Sir P (I. of Wight)Touche, G. C.
    Dower, Lt.-Col. A V G. (Penrith)MacLeod, J.Vane, W. M. F
    Drayson, G. B.Macpherson, N. (Dumfries)Walker-Smith, D.
    Drewe, C.Manningham-Buller, R. E.Wheatley, Colonel M J
    Duthie, W. S.Marples, A EWilloughby de Eresby, Lord
    Eden, Rt. Hon. A.Marshall, D. (Bodmin)Winterton, Rt. Hon. Earl
    Elliot, Rt. Hon. WalterMarshall, S. H. (Sutton)York, C.
    Foster, J. G. (Northwich)Mellor, Sir J.
    Fraser, Sir I. (Lonsdale)Morris- Jones, Sir HTELLERS FOR THE NOES
    Fyfe, Rt. Hon. Sir D. P. MMorrison, Maj. J. G. (Salisbury)Mr. Studholme and
    Gage, CMorrison, Rt Hon. W S. (Cirencester)Lieut.-Colonel Thorp.

    8.30 p.m.

    I beg to move, in page 19, line 42, to leave out Subsection (13).

    For the benefit of hon. Members who have not an intimate acquaintance with the Bill I should explain that Subsection (13) which we are moving to omit, says:
    "Subject to the next following section, every body to whom this Part of this Act applies shall be dissolved on the vesting date."
    To a large extent this Subsection, although a comparatively short one, is one of the most vital in the Bill. It compulsorily dissolves all the existing companies on the vesting date. The re- sult of that is that we shall shortly begin consideration of a number of very complicated Clauses, all of which are rendered necessary by this Subsection, and practically none of which would be necessary but for the decision of the Government to take this particular action. This action is unprecedented. It was not taken in the case of the Coal Industry (Nationalisation) Act. In that case companies were left in existence after the vesting date, to be wound up if they saw fit, or to continue in existence with the compensation money accruing to them, if they saw fit. This has not been done in the case of the Transport Bill. Companies are to be allowed to continue in existence, in the case of that Bill, for the time necessary to wind up their affairs after the vesting date.

    Now, for the first time, we are being asked to pass a provision which says that on the vesting date these companies shall cease to exist. In the view of Members on this side of the House, no adequate reason for this exceptional step has been given up to the present moment. In the course of the Committee proceedings upstairs, the Minister said:
    "These undertakings are to be taken over lock, stock and barrel.…Obviously, if that is done, they will be left with no functions to perform after the vesting date."
    That is, if the Minister will forgive me saying so, sheer nonsense. The proof of that is that it has been necessary to insert in subsequent Clauses complicated provisions setting up a stockholders' and shareholders' representation to perform, inadequately as we think, the functions of winding up that ought to have been, and easily could have been, performed by the companies had they remained in existence beyond the vesting date. Because of this action, these complicated provisions have had to be inserted. The Minister went on to say:
    "It would, I think, be embarrassing if we had in existence, after the vesting date, bodies of directors who had no functions to perform other than to look after the interests of the stockholders in respect of the distribution of the assets.…"
    That seems to be a very inadequate reason to put forward for inserting all these complicated provisions. Perhaps the real reason at the back of the Minister's mind is provided in the remaining words of that sentence of which I have quoted the earlier part. He said:
    "…and who might, for many reasons, be a bit troublesome. They are troublesome before the vesting date, and while there is no reason to assume that they will be unduly troublesome afterwards, we had better take no risks."—[OFFICIAL REPORT. Standing Committee E, 27th March, 1947; c. 475–6.]
    That is the nadir of Governmental argument. I do not know whether it would be in Order to discuss the subsequent Clauses, but hon. Members may take it from me—and they will learn how right I am as discussions continue tonight—that Clauses 15, 18, 19, 20, 21, 22, 23, 24 and 25, very largely originated because of Clauses 17 and 13. It will be necessary to detain the House at some length on all these Clauses. Broadly speaking, the effect of Clauses 17 and 13 is to make necessary all these very complicated provisions. We believe that no adequate reason for this has hitherto been given. We still believe that it would be much simpler both for the Government, the Civil Service and the shareholders if this Subsection were omitted and the existing directors were allowed, after the vesting date, to wind up their affairs. The method which is proposed in this Subsection is one which was not followed in the cases of the nationalisation of coal and transport.

    The right hon. Gentleman has dealt with this matter at some length, but I can reply quite shortly, which is as much as the argument really deserves. There is no point whatever in continuing in office a body of directors if they have no responsibilities to perform.

    Well, there has been no indication of the usefulness in their functions, so far as I can see, except, of course, that hon. Members have in mind that, after the vesting date, if these bodies continue as an entity, the directors would also be continuing and would receive their usual emoluments, and, to that extent, we would overcome the difficulties presented to us by the last Amendment, of which the House has already disposed. We cannot go back on that decision now.

    What were the arguments adduced by the right hon. Gentleman in the Committee? They are on record. He said that boards of directors should be kept in being to advise the Central Electricity Board during the transitional period. So far as this will be agreeable to the new authority, their services can be transferred, and, therefore, they can give guidance to the new authority without retaining the undertakings. Then, the argument was presented to us that the board of directors should be allowed to represent the security holders. There was no provision in the Bill for this at first, but the point has been met, and it has now been decided, and provision made in the Bill, that directors may now be elected as stockholders' representatives. That point has been cleared up.

    The final point, to which the right hon. Gentleman has just referred and upon which much was said in the Committee proceedings, was that the procedure which it is proposed to adopt differs substantially from the procedure adopted in relation to coal and transport. As I have so often said, it does not follow that the procedure adopted in one nationalisation scheme is appropriate to another nationalisation scheme. In the case of the coal industry, where the colliery undertakings, for the most part, had possession of collieries, but with ancillary and subsidiary undertakings like coke ovens, brickworks and the like, it was desirable for many reasons that the companies should retain their identity for some time after the vesting date, and some of them are"still in existence, although I understand that many are now going into liquidation.

    In the case of electricity it is quite different. Here is a series of undertakings dealing, not with a variety of projects, but with one—the provision and distribution of the electricity supply. As hon. Members know, we have set up an organising committee to make the necessary preparations for vesting day, when the transfer is to be effected, so that we shall not be caught napping when vesting day comes, but will be able to say that we shall no longer require the services of the existing private directors. That is the position. The right hon. Gentleman can say what he likes and use all the vituperation he likes in saying that what I have said is not true, although it is not necessarily vituperation to say that anything said by me is untrue. It is quite natural to expect it from the right hon. Gentleman, but I say that these are the facts of the situation, and I am going to ask the House to reject this proposal In my judgment, it is not entirely but to some extent, a wrecking Amendment, and, if this proposition were accepted, it would hamstring the Bill.

    8.45 p.m.

    I am sorry that the Minister was not present to hear some of the comments made by several hon. Members on his speech in the course of this Debate. The speeches today seemed to indicate, just as much as when this matter was discussed in Committee, that there was something of indecent haste in the way the Minister wanted to get rid of these boards of directors. Listening to his line of argument, one got the impression that their activities had been against the best interests of the industry. As I remember it, I think that the Minister, in fact, did advance that reason as the cause behind the desire to nationalise the electrical industry. He had previously suggested that it was efficiently run, yet, when it comes to the question of whether or not these directors are to remain in being—not paid, as suggested by the Minister, and not on behalf of their shareholders, but to carry out quite properly a function which they would desire to carry out to see that the industry or their part of it was* effectively and efficiently handed over to their successors— the right hon. Gentleman sees no reason for that. If the matter were to be limited merely to the managers or technicians, it would be like one battalion taking over from another in the line and wanting no advice except from the signals officer, and saying, "We are not interested in what the remainder of the officers of the battalion may know in regard to the general situation." There is no difference.

    If the Government do not wish to avail themselves of the information, -guidance and help that would undoubtedly be forthcoming, they could turn it down, but to close their minds to it because of prejudice, and to deny to themselves and, in fact, to the nation the advantages they could procure by turning to the previous controllers of this industry, seems against the interests of the nation as a whole, whatever one's political views may be. Why should it be suggested that directors who for many years have carried out their functions and duties in a most conscientious manner would, at that moment, cease to continue their duties towards the industry which they have for long so faithfully served? Indeed, if their advice or guidance was in any way unsatisfactory, it need not be acted upon. Whether it is that the Minister is unwilling to withdraw from the position which he very unwisely took up in Committee, I do not know, but it seems to me on this occasion that he has once again interjected into this matter—which is nothing more than administrative policy—a great deal of unnecessary prejudice. I think that he is very unwise to do that, and I hope that this Amendment will receive the support it deserves.

    Like my hon. and gallant Friend the Member for Fylde (Colonel Lancaster) I am a little sorry that the Minister was not able to wait to listen to any comment upon his speech, more particularly as it might rightly be said that a substantial part of it was devoted to setting up what purported to be the Opposition arguments and then an assumption that, of course, they fell down. In that portion of his speech I think the right hon. Gentleman was really less than fair to us. He omitted the fundamental, if not the most effective or skilful argument which has been put from this side. I would ask hon. Members opposite to bear in mind that they themselves may find cause for regret in this before many years have passed. The fundamental argument is this. They have come to power after two generations of propaganda in favour of socialisation with compensation, and it has been very frequently argued against them in the past that what they were offering was actually a figment, because if one nationalises on sufficiently a large scale, one cannot possibly have anything real with which to compensate. It is, therefore, of extreme importance to them that it should be made clear that they are compensating in this Bill. I am quite clear in my mind about the difficulty of Order. I do not propose to argue about the compensation part of the Bill.

    What I am trying to argue about is the meaning of the word "compensation" itself, and whether that is or is not affected by this Amendment, and I submit that it is. Compensation has always meant, in logic and theory, and has always meant in our Parliamentary history, as could be shown by reading all the statutes right back to the beginning of the 18th century and earlier that when the State takes away asset x from person A, person A receives something equivalent to asset x I hope that that is simple. If Subsection (I3)MS left in the Bill, then, with the partial exception of one earlier Act passed by this Government, for the first time in history that will cease to be true. Here it is proposed to take away x from one entity; the Government are purporting to compensate by giving something which one cannot pretend to be the equivalent of x to somebody other than the expropriated person, and the machinery for doing that is by providing that on the vesting date the company shall go out of existance. It lands the whole Bill in a position where it is not consistent with any previous general statement about nationalisation, or compensation for assets taken over by the State, and where it is not consistent with any previous use logical or chronological of the word "compensation."

    What is the result? The result is a long list of Clauses—almost all those between Clauses 13 and 24. Almost all of those Clauses have had to be put in to try to bridge the logical gaps left by this essential and fundamental defect in the whole structure of the Bill. If any hon. Gentleman who was not on the Committee upstairs has taken the trouble—I do not suppose anybody has—to read through all our Debates, even allowing for prejudices on one side of the House or the other, he will agree with me that the only argument of the Government was, "Oh, well, we cannot see any other way of doing it." There was no positive argument for what was being done. There was no argument at all, except the assumption that His Majesty's Government want to take over these things and that this is administratively the easiest way to do it. I do not believe that can be effectively controverted, and if that is so I suggest that this House ought to accept my right hon. Friend's suggestion for the deletion of Subsection (13).

    But I will also say to hon. Members opposite that if there is any truth, even only 48 per cent. of truth, in the case I have been putting up—I do not suppose for a moment that the case I have been putting will in those terms get down within 24 hours to the electors of Cowcadders, for instance, but in time I have little doubt that it will silt down that this Government have already made it quite plain that really large-scale nationalisation is not compatible with compensation in any sense previously contemplated either by the English dictionary or by English law. If the people of this country do get that into their heads then that is the end of the Mensheviks opposite and the Bolsheviks, too, because I am sure the real Bolsheviks would not tolerate their support.

    This is a Bill to nationalise the electricity services. [HON. MEMBERS: "Hear, hear."] I am sorry to indulge in platitudes which appear to annoy the other side, but really one must suit oneself to one's audience, and hon. Members need reminding of this. A little time ago there was the Bill to nationalise the coalmines. Nationalisation means taking away from a man or a corporate body something which he has, and vesting it in the State.

    It may be a good or bad thing, but it is not a necessary corollary that the man should be condemned to death or the corporate body wound up. Indeed, the Minister has told us that, in the case of the coal companies, it was highly necessary that they should remain in being, and then he rather incautiously added that many of them are being voluntarily wound up. It is for the Government to show some particular convenience in doing this, not for the other side to show that the Bill will not work without it. A little amusement is welcome in these days, and I think that for the Minister to load a speech with insinuations and complaints of vituperation from the Opposition, and then to go out is really a very amusing effort. His speech was a campaign against directors as such. I admit they may be vile creatures, but I should think they have the ordinary rights of human beings—namely, to be responsible to their stockholders, who are perfectly capable in due course of winding up those companies if they think fit to do so. Why is that not done? The Minister has kindly told us—because to do it in that way would be fatal to the whole scheme, which is what he says this side wants. Why should it be fatal to the whole scheme? Fatal to the scheme, I suppose, because it leaves at large competent corporate bodies. I feel grateful to the Minister for making not only an amusing but an instructive speech —very amusing, with smear tactics and envenomed attacks on this side, obstructing us in getting at his own motives.

    I think that hon. Members on this side of the House are rather at a disadvantage in discussing this Amendment because of the subsequent one on which we must not trespass; but if one is entitled to assume that the arguments which my right hon. Friend did advance were sound, then nothing can be more unconvincing than the speech the Minister made. What it really came to was, that arguments of the greatest possible import in the commercial world were worth no answer at all. Having made that ex parte statement for which he advanced no reason, he then went on to say that what we were interested in on this side of the House was to preserve the possible emoluments of directors; and he implied that the only directors we were concerned with in this House and elsewhere were the "guinea-pig" directors. He finished up by saying that, obviously, circumstances must change, and that what the Government might think equitable in the case of coal, would not be equally equitable, in their view, so far as electricity was concerned.

    9.0 p.m.

    Surely, the one argument he advanced —which was that whereas coal had many ancillaries, electricity had none—is about the one argument he could not sustain for in the last two days we have already had arguments to the effect that the Government have found it necessary to put down special Clauses on this very thing, in order to ensure the continuance of the very ancillaries the existence of which the Minister now denies. Equally, have we not spent time earlier today in ensuring that these ancillaries can carry on, although the companies themselves may cease to exist? It does seem to me that a very great point of principle is involved here. The company as such is responsible for whatever may happen to those assets which it controls.

    The Government are taking over those assets under terms of compensation which we shall be able to discuss later. I am afraid that if I were to go into that any further you would rightly rule me out of Order, Mr. Deputy-Speaker. It is most unfortunate, because it is practically impossible to make one's argument. However, I hope I may be in Order in saying to the Financial Secretary that the essence of company law is that the company is a separate individual. I would only quote him the case of Saloman versus Saloman in 1897, which is apparently a textbook case for everyone indulging in this particular branch of legal practice. If that is so, the Government have no right whatsoever to disband a company until it has finished whatever affairs it may be responsible for. [An HON. MEMBER: "Why not?"] Because it so happens the 100 years of company law, as exemplified by this case, determine that that is so. If it is the intention of hon. Members opposite to throw over the whole of company law, let them say so. I know that is very easy; and the hon. Member for West Fife (Mr. Gallacher) would throw over anything. But we are still assuming in this House that law means something. Of course, if it does not mean something to hon. Members opposite, then that case goes. We are still assuming that it does. If that is so, the Government have no right whatsoever to effect, as they are doing, under Clause 13 a provision which is directly opposed to every principle of company law ever enunciated in this country.

    I go one stage further. In Standing Committee B at the moment we are considering a new Bill designed to remodel company law. That law guards and protects every class of shareholder. At the moment, by